IMPACT OF SOCIAL MEDIA MARKETING ON PERFORMANCE OF MICRO · PDF filePage | 3 DECLARATION I,...

Page | 1

IMPACT OF SOCIAL MEDIA MARKETING ON

PERFORMANCE OF MICRO AND SMALL BUSINESSES

Dissertation Submitted to D. Y. Patil University, Navi Mumbai,

Department of Business Management

In partial fulfillment of the requirements for the award of the Degree of

MASTER OF PHILOSOPHY

in

BUSINESS MANAGEMENT

Submitted by

SHILPA H. CHHEDA

(Enrolment No. DYP-M.Phil-11001)

Research Guide

Prof. Dr. R. GOPAL

DIRECTOR, DEAN & HEAD OF DEPARTMENT

D.Y. PATIL UNIVERSITY, NAVI MUMBAI,

DEPARTMENT OF BUSINESS MANAGEMENT

July, 2014

Page | 2

IMPACT OF

SOCIAL MEDIA MARKETING

ON

PERFORMANCE OF MICRO AND

SMALL BUSINESSES

Page | 3

DECLARATION

I, hereby declare that the thesis titled IMPACT OF SOCIAL MEDIA

MARKETING ON PERFORMANCE OF MICRO AND SMALL BUSINESSES

Submitted for the Award of Master of Philosophy (M. Phil) in Business Management

at D. Y. Patil University,Navi Mumbai, Department of Business Management is my

original work and the Dissertation has not formed the basis for the award of any

degree, associateship, fellowship or any other similar titles.

The material borrowed from other sources and incorporated in the thesis has been

duly acknowledged.

I understand that I myself could be held responsible and accountable for plagiarism, if

any, detected later on

The research papers published based on the research conducted out of an in the course

of the study are also based on the study and not borrowed from other sources.

Date: Signature of Student

Enrolment No. DYP-M.Phil-11001

Page | 4

CERTIFICATE

This is to certify that the dissertation entitled “IMPACT OF SOCIAL MEDIA

MARKETING ON PERFORMANCE OF MICRO AND SMALL

BUSINESSES” is the bonafide research work carried out by Mrs. Shilpa Chheda,

student of Master in Philosophy (Business Management), at D. Y. Patil University,

Navi Mumbai, Department of Business Management, in partial fulfillment of the

requirements for the award of the Degree of Master in Philosophy (Business

Management) and that the dissertation has not formed the basis for the award

previously of any degree, diploma, associateship, fellowship or any other similar title

of any University or Institution.

Place: Mumbai _____________

Date: Signature of the Guide

Page | 5

ACKNOWLEDGEMENT

Firstly, I am thankful to the almighty God for all the blessings showered.

I am indebted to the D.Y.Patil University, Navi Mumbai, Department of Business

Management, which has accepted me for M. Phil program and provide an excellent

opportunity to carry out this research project and enhance my erudition.

I sincerely thank Prof. Dr. R. Gopal, Director, Dean and Head of the Department at

D.Y. Patil University, Navi Mumbai, Department of Business Management from the

bottom of my heart for having given me his invaluable guidance for the project and

sparing his precious time for me from his very busy schedule.

Apart from the efforts put in by me, I would like to appreciate the unflinching support

of my husband Hiren Chheda, who has been my pillar of strength in the moments of

doubts and has been there, when there is no one to answer my queries.

I want to express my heartfelt gratitude to Dr. Amarendra Gandhi for his tremendous

support and mentoring. Without his encouragement and guidance this project would

not have materialized the way it has.

I am grateful for the constant support and help given to me by my friends Ms. Keerthi

Menon and Mrs. Sneha Paryani, as I felt motivated and encouraged every time we

discussed about the project which was vital for the success of the project.

The guidance and support received from my family and friends is beyond limits.

I remain grateful to all those who spared their valuable time in filling up the

questionnaire. Finally, I am sincerely obliged to all those who have helped me directly

and indirectly in the completion of this study.

Place: Mumbai

Date: Signature of the Student

Page | 6

CONTENTS

CHAPTER No. TITLE PAGE No.

Title I

Declaration II

Certificate III

Acknowledgement IV

List of Tables VI

List of Figure VII

List of Abbreviations VIII

Executive Summary IX

Chapter I INTRODUCTION 1

1.1 Introduction to Micro and Small Business 1

1.2 Introduction to Social Media 6

1.3 Statistics of Social Media Use in India 12

1.4 Introduction to Concept of Social Consumer 17

Chapter II REVIEW OF LITERATURE 21

2.2 Research Gap 43

Chapter III OBJECTIVES AND RESEARCH

METHODOLOGY

44

3.1 Purpose of the Study 44

3.2 Objective of the Study 44

3.3 Hypothesis 45

3.4 Methods of Data Collection 46

3.5 Research Instrument 47

3.6 Sample Description 47

3.7 Data Analysis 48

Page | 7

3.8 Limitations of the Research 48

3.9 Future scope of the study 49

Chapter IV SOCIAL MEDIA MARKETING 50

4.1 Introduction 50

4.2 Rise in Social Media Marketing 51

4.3 Social Media Marketing for Small

Businesses

53

Chapter V ENGAGEMENT METHODS 57

5.1 Introduction 57

5.2 Importance of Engagement Methods 59

5.3 Engagement Techniques of Social Media

Tools

64

Chapter VI DATA ANALYSIS AND FINDINGS 79-127

Chapter VII CONCLUSION 128-131

Chapter VIII SUGGESTIONS AND

RECOMMENDATIONS

132-134

Chapter IX ANNEXURE

References (Bibliography) 135

Questionnaire 141-161

Page | 8

LIST OF TABLES

Sr. No. Table No. Title Page No.

1. Table 1.1 India Snapshot 12

2. Table 1.2 India : Internet Indicators 12

3. Table 1.3 India : Social indicators 13

4. Table 1.4 India: Social Media Use 13

5. Table 1.5 India : Mobile Users 14

6. Table 1.6 India : Contract Type 14

7. Table 1.7 India : Smartphone Usage 15

8. Table 1.8 India : Mobile Statistics 15

9 Table 2.1 Micro Small and Medium Enterprise Act 25

10. Table 3.1 Sample Size 48

11. Table 5.1 PC-Smartphone Engagement Index 63

12. Table 5.2 Facebook Statistics 65-66

13 Table 6.1 Small Businesses using Social Media 79

14 Table 6.2 Type of business 80

15 Table 6.3 Average customer prior social media 81

16 Table 6.4 Use of Engagement tools 82

17 Table 6.5 Initial Investment 83

18 Table 6.6 Objective of using social media 84

19 Table 6.7 Frequency of using social media 85

20 Table 6.8 Other media used 86

21 Table 6.9 Organized deals promotion 87

22 Table 6.10 Campaign using Social Media 88

23 Table 6.11 Frequency of updates 89

24 Table 6.12 Increase in business 90

25 Table 6.13 Social media benefit to business 91

26 Table 6.14 Measurement of Success 92

27 Table 6.15 Social media Investment 93

Page | 9

LIST OF FIGURES

Sr. No. Figure No. Title Page No.

1 Figure 6.1 Small Businesses using Social Media 79

2 Figure 6.2 Type of business 80

3 Figure 6.3 Average customer prior social media 81

4 Figure 6.4 Use of Engagement tools 82

5 Figure 6.5 Initial Investment 83

6 Figure 6.6 Objective of using social media 84

7 Figure 6.7 Frequency of using social media 85

8 Figure 6.8 Other media used 86

9 Figure 6.9 Organized deals promotion 87

10 Figure 6.10 Campaign using Social Media 88

11 Figure 6.11 Frequency of updates 89

12 Figure 6.12 Increase in business 90

13 Figure 6.13 Social media benefit to business 91

14 Figure 6.14 Measurement of Success 92

15 Figure 6.15 Social media Investment 93

16 Figure 6.16 Use of Social Media Sites 98

17 Figure 6.17 Age Distribution 99

18 Figure 6.18 Educational Level 100

19 Figure 6.19 Marital Status 101

20 Figure 6.20 Employment Status 102

21 Figure 6.21 Having account on Social media 103

22 Figure 6.22 Social Media usage pattern 104

23 Figure 6.23 Log In patterns 105

24 Figure 6.24 Social Media Sites Followed 106

25 Figure 6.25 Confidentiality on social media 107

26 Figure 6.26 Purpose of using social media 108

27 Figure 6.27 Importance of SM in Social Life 109

Page | 10

28 Figure 6.28 Influence of opinion/review 110

29 Figure 6.29 Reason for Brand Attraction 111

30 Figure 6.30 Reference for retailers 112

31 Figure 6.31 Level if Trust on online shopping 113

32 Figure 6.32 Level of Trust 114

33 Figure 6.33 Relevance of SM Advt. 115

34 Figure 6.34 Frequency of clicks 116

35 Figure 6.35 Frequency of purchasing 117

36 Figure 6.36 Experience of shopping online 118

37 Figure 6.37 Mode of Payments 119

38 Figure 6.38 Level of Satisfaction 120

39 Figure 6.39 Satisfaction of after sales 121

40 Figure 6.40 Grievances/ complaints 122

41 Figure 6.41 Effects on purchasing 123

Page | 11

LIST OF ABBREVIATIONS

ADS – Advertisements

B2B – Business To Business

B2C – Business To Consumer

CEO – Chief Executive Officer

CRM – Customer Relation Management

eWoM – Electronic Word Of Mouth

FB – Face Book

IAMAI – Internet And Mobile Association Of India

IIM – Indian Institute Of Management

IMRB – Indian Media Research Bureau

IT – Information Technology

MBBS – Bachelor Of Medicine And Bachelor Of Surgery

MSE – Micro Small Enterprise

MSME – Micro Small Medium Enterprises

NSRCEL – N S Raghavan Centre For Entrepreneurial Learning

P & G – Procter And Gamble

RSS – Rich Site Summary

SEO – Search Engine Optimization

SERP – Search Engine Results Page

SM – Social Media

SMB – Small Medium Business

SMM – Social Media Marketing

SMO – Social MediaOptimization

Page | 12

SMMW – Social Media Marketing World

TLD – Top Level Domain

UNICEF – United Nations Children Fund And Emergency Relief

Page | 13

EXECUTIVE SUMMARY

The research report on, ”Impact of Social Media Marketing on performance of micro

and small businesses” is to study how Micro and Small businesses can leverage

social media to penetrate their markets, reach their customers and develop

relationships in a personal and direct manner that can catapult their brand and raise

their awareness as successfully as any large business. The report also discloses the

influence of social media on consumers’ online buying decisions.

Social media was a completely new thing four years ago, many people did not know

what social media was and the effect it would have on all in our lives. It was an

exciting interactive medium which suddenly took the world by storm to such an

extent that it became something that no business, small or large, local or global, could

afford to ignore. Today, there are more than 1.28 billion active users on Facebook

alone, currently the world's most popular social network. Twitter, LinkedIn, Google+

and various other social media sites have hundreds of millions of active users as well

.Social Media has relevance not only for regular internet users, but business as well.

Social media refers to the means of interactions among people in which they create,

share, and/or exchange information and ideas in virtual communities and networks.

Traditionally, a small business would develop their relationships by going from door-

to-door to raise awareness and grow their brand. How fast they achieve this depends

on their budget and time available to their business. Traditionally, large businesses

had the power of reaching their markets through huge advertising budget, which small

companies found it difficult to fight the stiff competition from these large companies.

In today’s business environment, social media has become a new marketing tool that

is available to all businesses, that instantly develops relationships with potential

customers. Social media does not require huge investments in terms of money or time.

Page | 14

Social media is a tool which enables small businesses to reach a large and potentially

global audience in a very short period of time with relatively little energy. This has

opened a whole new opportunity to the way a small business can develop awareness

about its goods, services and marketing activities and able to develop relationships by

communicating positive image and dialogue about a brand. Social Media is a

revolution. Personal, professional, and commercial aspects are combined seamlessly,

and in a blink of an eye, it promotes extreme extensive inter and intra communication

and interaction. Unlike traditional media channels, which offer a one-way experience,

social media is based on a two-way interactive experience between the consumer and

the business. Social Consumer, the term added in the study, is one who participates in

social commerce, social shopping, and consults with social media and social networks

when making purchasing decisions. Consumers interact with businesses or brands via

social media, for getting discounts or coupons, reading reviews as part of purchasing

process as customers research product information before deciding to transact.

Consumers are willing to interact with businesses through social media for their

benefit, and also to decide whether social media is the right channel to use to get the

value they seek and can help create trust for the company. That value could be in the

form of a coupon or specific information. Engaging with a company via social media

may result in a feeling of connectedness for consumers an emotional, intangible gain

but the wish for intimacy is not what drives most of them. For most consumers, social

media is about engaging with friends and family and accessing news and

entertainment not interacting with brands. Businesses are betting that social media

interactions will engender increased customer loyalty.

Marketing strategies of various micro and small businesses are beginning to include

social media as a valuable tool to connect with a vast pool of potential customers in

Page | 15

ways that encourage people to share information in a conversational manner.

Although marketers have traditionally focused all of their energies in ensuring the

best placement in the market. There is the possibility that over the period of time

people will start to perceive social media sites as the main source of all their

information and hence the best opportunity for micro and small businesses will unfold

here.

Social media marketing has become more common with the increased popularity of

websites such as Twitter, Facebook, LinkedIn, and YouTube. Social media marketing

refers to marketing done through social media or social networking websites. While

most companies and organizations have their own websites, it can be difficult to reach

users not know about the organization. Therefore, many organizations have found it

useful to develop a presence on websites, such as Facebook, LinkedIn, and Twitter as

well. Social media marketing provides a low cost opportunity for businesses to reach

large numbers of users and gain brand recognition. Since social networking websites

already have large established online communities, businesses and organizations can

gain exposure by simply making their presence felt on these websites. Organizations

can create custom social media profiles, then build their own communities within

these sites by adding users as friends or followers. Many companies attract users by

posting frequent updates and providing special offers through their social media

profile pages. While social media marketing is a powerful online marketing tool, it is

typically used to supplement other marketing methods rather than replace them. Since

just about any company or business and join a social networking website, it can be

difficult to stand out from the crowd. Therefore, most companies still rely on Web

advertising and search engine optimization to generate traffic to their websites. Social

media marketing programs usually center on efforts to create content that attracts

Page | 16

attention and encourages readers to share it with their social networks. A corporate

message spreads from user to user and presumably resonates because it appears to

come from a trusted, third-party source, as opposed to the brand or company itself.

Hence, this form of marketing is driven by word-of-mouth, meaning it results in

earned media rather than paid media.

Thus the main objective of the study is:

To identify the various types of business using Social Media for marketing

To study the impact of Social Media on Business Performance

To study the impact of various online promotional activities on the brand

visibility

To study performance of micro and small businesses after inclusion of social

media marketing

The study thus attempts to integrate definitions and meanings of Marketing, micro

and small businesses from various different streams of contemporary research. A

detailed theoretical evaluation of Social Media, social media tools, social media

marketing, engagement techniques of social media marketing used by micro and small

businesses, business benefits of Social Media Marketing is then attempted.

Methods of Data Collection

Primary data was collected from micro and small businesses and customers by using a

questionnaires designed to capture their perception and use of social media.

Page | 17

The report presents detailed analysis to describe various aspects related to Social

Media Marketing and its influence on businesses and consumers, based on which

certain findings and conclusion on the research topic are penned down.

Online research questionnaires were prepared for the survey, one for the small

business and other for the consumer. Questionnaire was categorized with Multiple

Choice closed-ended questions as they are ideal for calculating statistical data and

percentages. Further specifically Closed-Ended Importance Questions, Likert

Questions, Dichotomous Questions, open ended question to get descriptive

information about the topic were asked to collect data and achieve the purpose of

study.

Limitations of the study

Use of online questionnaire, is often quicker and less detailed. The disadvantages of

this method can be the exclusion of people who do not have a computer or mobile and

also require internet connection. Also the validity of such surveys are questionable as

people might be in a hurry to complete it so might not give accurate responses and

may not be willing to share details. Constraints of time and resources were inevitable.

Area of study for micro and small businesses was restricted to Mumbai to get better

insights of local market. and also all the tools of social media engagement are not

explored.

Major Findings of the Study

Social media in today’s times, is the number one activity on the web, as majority of

the respondents of the study have been found to be using social media for more than 3

years and spend on an average 4-5 hours on it a day. People of all ages are not

Page | 18

actively using social media. Respondents of the age group from 15 to 35 are the most

active while respondents above age group 45 are generally not engaged in social

media for buying decisions as they prefer traditional method of shopping.

Demographic details can be surmised as the respondents of the age group 15-35 lead

the survey, indicating that the younger generation is spending more time on social

media sites as they are logged in quite frequently. Majority of the respondents found

that social media is important for their social life and they engage in it mostly for

connecting with family and friends, socializing and collecting the information.

Facebook is the most favored and popular social networking site of the respondents

followed by linkedin and twitter, thus information on these social networking sites

seems to be relevant and of matter of interest to them. Majority of the respondents

hardly got influenced by the views and reviews of the family and friends and also the

external source, this may indicate that the decision making is influenced to the extent

of procuring information. Respondents do find the relevance in the advertisement they

see on social media sites and also click on them sometimes indicating they get

attracted towards the brand and want to collect information about the same though it

may not convert into a purchase. They find contests, promotions, pictures, offers

interesting and like to participate, which shows that brand information do influence

the respondents. As far as the shopping experience is concerned, majority of the

respondents who have shopped online responded positively and were satisfied with

the overall experience. The level of trust for shopping online is building gradually as

majority respondents agreed to have shopped sometime or the other after clicking on

the advertisement. Respondents are satisfied with the after sales service provided by

the companies selling online and they have rarely addressed the grievance, which can

be a step towards trust building and relationship management for shopping online.

Page | 19

Overall, the factors help to conclude that the consumers do get influenced by social

media marketing to some extent for making purchase decisions.

Awareness of social media is certainly very high among small businesses; it has

become the talk of the town. As it was found that nearly 70% of respondents use

social media for their business and to increase their visibility. But simultaneously, on

the other side of the coin nearly 30% of the respondents are still not using social

media and hence are missing out on a tremendous opportunity to connect and engage

with potential customers. Small businesses have been slower to adopt, mainly because

they feel social media is not significant for their type of business. Many respondents

perceive their customers base do not use social networks or not suitable for their type

of business. In fact, this sentiment was echoed by 30% of respondents in a recent

survey which mostly included distributors and manufacturers. Majority of the

respondents found social media marketing very important for their business and were

certain about its bright future potentials, when asked for their opinions about social

media. It was found that majority of micro and small business had done initial

investment from zero up to 5 lakhs of budget to engage in social media for business.

The main reason for social media marketing was to create a platform for highlighting

their brand and create brand awareness as it would be difficult for the small business

to advertise their product by other expensive and paid mediums with limited

resources. The brand highlighting was done through various social media tools like

facebook, twitter, pinterest, linkedin by using various engagement methods. Majority

have responded that they have not measured the increase in the revenue after the

inclusion of social media as a marketing tool, as there can be numerous other factors

which have an impact on the revenue generation of businesses.

Page | 20

Although social media marketing is a relatively recent concept in India, it has

redefined the way businesses are implementing marketing campaigns. With the online

medium providing mass reach and low cost benefits, social media marketing is a

powerful tool not just for big companies but also for small entrepreneurial start-ups.

Businesses must creatively use social media marketing and come up with innovative

campaigns to reach out to customers and build a successful brand.

Future scope of the study

The present study is restricted to Mumbai city, which gives a scope for further study

to be conducted in other metropolitan cities and even other tier I cities.

Page | 21

CHAPTER I

Page | 22

INTRODUCTION

Social media marketing is the latest "buzz" in marketing. India is probably among the

first proponents of social media marketing. These days, the organizational cause has

replaced the social cause as companies seek to engage with their audience via the

online platforms. Online presence is a must for businesses today. Apart from a basic

website; consumers looks for a blog, a Facebook page, shopping cart, e-brochures,

etc. 92% of micro and small businessesagree that social media is an effective

marketing technology tool. They are evenly split on the effectiveness of social media

for attracting new customers and engaging existing customers. (e-Strategy Trends)

1.1 Introduction to Small Business

There are around 40 million small business owners in India, out of which, around

500,000 have their presence online while there are 23 million micro and small

businesses in the US.

Medium and Small Enterprises Sector (MSEs) continue to be a vibrant sector of the

Indian economy. It is estimated that there are about 12.8 million units (over 90 per

cent of total industrial units) in this sector employing nearly 31 million people. This

sector contributes nearly 39 per cent of the total industrial production and accounts for

approximately 33 per cent of the total exports. This sector has consistently registered

a higher growth rate than the rest of the industrial sector. There are over 6500

products ranging from traditional to high-tech items, which are being manufactured

by the small enterprises in India. After agriculture, the MSEs sector provides the

maximum opportunities for both self-employment and jobs in the country. The small

enterprises sector in India holds great potential for further expansion and growth in

the future.

Page | 23

The Government of India has enacted the Micro, Small and Medium Enterprises

Development (MSMED) Act, 2006 in terms of which the definition of micro, small

and medium enterprises is as under:

(a) Enterprises engaged in the manufacture or production, processing or preservation

of goods as specified below:

(i) A micro enterprise is an enterprise where investment in plant and machinery does

not exceed Rs. 25 lakh;

(ii) A small enterprise is an enterprise where the investment in plant and machinery is

more than Rs. 25 lakh but does not exceed Rs. 5 crore; and

(iii) A medium enterprise is an enterprise where the investment in plant and

machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

In case of the above enterprises, investment in plant and machinery is the original cost

excluding land and building and the items specified by the Ministry of Small Scale

Industries vide its notification No.S.O.1722(E) dated October 5, 2006.

(b) Enterprises engaged in providing or rendering of services and whose investment in

equipment (original cost excluding land and building and furniture, fittings and other

items not directly related to the service rendered or as may be notified under the

MSMED Act, 2006 are specified below.

(i) A micro enterprise is an enterprise where the investment in equipment does not

exceed Rs. 10 lakh;

(ii) A small enterprise is an enterprise where the investment in equipment is more than

Rs.10 lakh but does not exceed Rs. 2 crore; and

Page | 24

(iii) A medium enterprise is an enterprise where the investment in equipment is more

than Rs. 2 crore but does not exceed Rs. 5 crore.

Thus these large variety of products and services, produced and rendered by micro

and small firms need to reach the end consumer by using appropriate marketing

strategy choosing various medias so let us have a look about marketing and marketing

strategy.

Types of Micro and Small Home-based businesses

A home-based business is an enterprise in which all or most of the work is performed

at or from the owner-operator's private residence. Home-based business is one of the

fastest growing sectors in the economy. Common businesses that are operated from

home are trade businesses, where general administrative tasks are done at home, with

work being completed at various sites. Examples include painters, plumbers and

electricians. Many micro-businesses are family operated. Family members will

generally have ownership of the business and play a significant role in its day-to-day

operations. Many publicly-listed companies and franchises started from the humble

beginnings of a family-operated business. Some common examples of family

businesses include cake shops, restaurants, café, florists, designers, photography and

so on.

Independent contractors run their own business, and hire out their time to businesses

and other organisations as a service. Their entitlements and obligations differ from an

employee in many ways. They own our own business and generally will be able to

negotiate fees and working arrangements. Some examples of independent contractors

are builders, caterers and personal trainers.

Page | 25

A franchise is an arrangement whereby the originator of a business product or

operating system (franchisor) gives a prospective small business owner (franchisee)

the right to sell these products and/or use the business operations system on the

franchisor's behalf. Some key micro-business franchises include food chains, cleaning

businesses franchises.

E-businesses are businesses that utilise the internet for business activities, advertising

and transactions. With the increase in internet use and popularity, along with

relatively low start-up capital requirements, the emergence of e-businesses has seen a

dramatic increase in the past decade. Some e-businesses are solely internet-based,

with all communications and transactions completed online. Other businesses use a

website to support the physical store and products, by providing product information

online. Others simply use the internet as an advertising tool.

Marketing

The management process through which goods and services move from concept to the

customer. Marketing is based on thinking about the business in terms of customer

needs and their satisfaction. Marketing differs from selling because (in the words of

Harvard Business School's retired professor of marketing Theodore C. Levitt)

"Selling concerns itself with the tricks and techniques of getting people to exchange

their cash for your product. It is not concerned with the values that the exchange is all

about. And it does not, as marketing invariable does, view the entire business process

as consisting of a tightly integrated effort to discover, create, arouse and satisfy

customer needs." In other words, marketing has less to do with getting customers to

pay for your product as it does developing a demand for that product and fulfilling the

customer's needs.

Page | 26

The marketing mix is a familiar marketing strategy tool, which you will probably

know, was traditionally limited to the core 4Ps of Product, Price, Place and Promotion

The 4Ps were designed at a time where businesses sold products, rather than services

and the role of customer service in helping brand development wasn’t so well know.

Over time, Booms and Pitner added three extended ‘service mix P’s’: Participants,

Physical evidence and Processes, and later Participants was renamed People. Today,

it’s recommended that the full 7Ps of the marketing mix are considered when

reviewing competitive strategies. Thus the businessman uses appropriate marketing

mix for his product or services and prepare a marketing strategy using various

combinations to reach out the customers.

Marketing Strategy

An organization's strategy that combines all of its marketing goals into one

comprehensive plan. A good marketing strategy should be drawn from market

research and focus on the right product mix in order to achieve the maximum profit

potential and sustain the business. The marketing strategy is the foundation of a

marketing plan.

Life for marketers used to be simpler. He just had a few TV channels, some radio

stations, a handful of top magazines and a newspaper or two in each market.

Reaching consumers was easy by crafting a compelling message. Now there are

whole slew of TV channels, millions of web sites and hundreds of thousands of

applications. Marketing was never easy, but technology has made it a whole lot

tougher. What used to be a matter of identifying needs and communicating benefits

now requires to build immersive experiences that engage consumers which requires a

seamless integration of a whole new range of skills and capabilities. There’s so much

Page | 27

going on in the marketing arena today, everybody is struggling to keep up. At the

same time, every marketing professional feels pressure to be “progressive” and

actively integrate emerging “media” into their marketing program.

However, most businesses can be adequately captured by evaluating just three

metrics: awareness, sales and advocacy (i.e. customer referral). This metrics can be

achieved through traditional media along with combination of new media called

SOCIAL MEDIA.

1.2 Social Media

The best way to define social media is to break it down. Media is an instrument on

communication, like a newspaper or a radio, so social media would be a social

instrument of communication.

Regular or Traditional media has a one-way street where you can read a newspaper

or listen to a report on television, but you have very limited ability to give your

thoughts on the matter.Social media, on the other hand, is a two-way street that gives

you the ability to communicate too.

Social Media is the future of communication, a countless array of internet based tools

and platforms that increase and enhance the sharing of information. This new form of

media makes the transfer of text, photos, audio, video, and information in general

increasingly fluid among internet users. Social Media has relevance not only for

regular internet users, but business as well.Social media refers to the means of

interactions among people in which they create, share, and/or exchange information

and ideas in virtual communities and networks

Page | 28

Definitions of Social Media

1. Andreas Kaplan and Michael Haenlein define social media as "a group of

Internet-based applications that build on the ideological and technological

foundations of Web 2.0, and that allow the creation and exchange of user-

generated content."

2. Furthermore, social media depend on mobile and web-based technologies to

create highly interactive platforms through which individuals and communities

share, co-create, discuss, and modify user-generated content. They introduce

substantial and pervasive changes to communication between organizations,

communities, and individuals.

3. Social media differ from traditional or industrial media in many ways,

including quality, reach, frequency, usability, immediacy, and permanence.

4. There are many effects that stem from internet usage. According to Nielsen,

internet users continue to spend more time with social media sites than any

other type of site.

Wikipedia, the social media go-to reference created by the public in the form

of thousands of contributors, defines Social media as “media for social

interaction, using highly accessible and scalable communication techniques.

Social media is the use of web-based and mobile technologies to turn

communication into interactive dialogue.”

Page | 29

Social media is today’s most transparent, engaging and interactive form of

public relations. It combines the true grit of real time content with the beauty

of authentic peer-to-peer communication. Lisa Buyer – The Buyer Group

Social media is not about what each one of us does or says, but about what we

do and say together, worldwide, to communicate in all directions at any time,

by any possible (digital) means. Michelle Chmielewski – Synthesio

Social Media is a new marketing tool that allows you to get to know your

customers and prospects in ways that were previously not possible. This

information and knowledge must be paid for with output of respect,

trustworthiness, and honesty. Social Media is not a fad, but I also think it’s

just the beginning of the marketing revolution – not the end. Marjorie

Clayman – Clayman Advertising, Inc.

Social Media Websites:

1. Social networking sites- Facebook, Google Plus, CafeMom, Gather, Fitsugar

2. Interact by adding friends, commenting on profiles, joining groups and having

discussions.

3. Micro-blogging sites- Twitter, Tumblr, Posterous

4. Publishing tools- WordPress, Blogger, Squarespace

5. Collaboration tools- Wikipedia, WikiTravel, WikiBooks

6. Rating/Review sites- Amazon ratings, Angie’s List

7. Photo sharing sites- Flikr, Instagram, Pinterest

8. Video sharing sites- YouTube, Vimeo, Viddler

9. Personal broadcasting tools- Blog Talk radio, Ustream, Livestream

Page | 30

10. Virtual worlds- Second Life, World of Warcraft, Farmville

11. Location based services- Check-ins, Facebook Places, Foursquare, Yelp

12. Widgets- Profile badges, Like buttons

13. Social bookmarking and news aggregation- Digg, Delicious

14. Interact by voting for articles and commenting on them. Interact by tagging

websites and

15. Searching through websites bookmarked by other people.

16. Group buying- Groupon, Living Social, Crowdsavings

Popular Social Media Tools and Platforms:

Blogs: A platform for casual dialogue and discussions on a specific topic or opinion.

Facebook: The world’s largest social network, Users create a personal profile, add

other users as friends, and exchange messages, including status updates. Brands create

pages and Facebook users can “like” brands’ pages.

Twitter: A social networking/micro-blogging platform that allows groups and

individuals to stay connected through the exchange of short status messages (140

character limit).

YouTube &Vimeo: Video hosting and watching websites.

Flickr: An image and video hosting website and online community. Photos can be

shared on Facebook and Twitter and other social networking sites.

Instagram: A free photo and video sharing app that allows users to apply digital

filters, frames and special effects to their photos and then share them on a variety of

social networking sites.

Page | 31

LinkedIn Groups: A place where groups of professionals with similar areas of

interest can share and participate in a conversations happening in their fields.

Pinterestis a social curation website for sharing and categorizing images found

online. Pinterest requires brief descriptions but the main focus of the site is visual.

Clicking on an image will take you to the original source, so, for example, if you click

on a picture of a pair of shoes, you might be taken to a site where you can purchase

them. An image of blueberry pancakes might take you to the recipe; a picture of a

whimsical birdhouse might take you to the instructions.

Social Media and Small Businesses

Social Media Is Changing the Traditional methods of Presence.

The traditional techniques of marketing using print and electronic media along with

Internet marketing and lead generation were used to drive traffic to a business and its

website. As search engine algorithms evolve, website owners have to stay on their

toes to make sure their website is constantly updated with relevant and current

information to prevent being devalued in search results. Today, social media like,

Facebook pages, Twitter accounts, and YouTube channels are being seen as sites in

their own right to mark the presence.

Social Media Allows Businesses to Crowd-source Ideas

Before you launch a new product or service, one would like to have some ideas about

what people think about it. So by engaging with prospects and customers via social

media, one can actually ask the fans and followers what colors they prefer or what

types of features they want. Thus one can involve consumers in valuable free market

research, by asking their opinions and can help establish credibility by showing that

Page | 32

their opinions matter. After seeing their ideas becoming a reality, business has more

than likely just increased their customer base.

Social Media Allows to Keep An Eye On Competition

Businesses are changing marketing strategies based on information they find in social

media feeds from their competitors. By keeping an eye on competitors, their strengths

and weaknesses can determine their marketing efforts. This gathered information

helps to implement things that might be needed to improve such as social media

campaigns, contests, giveaways or types of content the followers may be responding

to the most.

Social Media Allows Business to Be More Transparent

The process of taking a prospect to the point of becoming a customer has slowed

down somewhat due to consumers’ awareness. People want to buy from those

companies who have established credibility and who seem to be totally transparent in

their advertising campaigns. Social media is changing peoples’ opinions of

businesses. By providing messages that are open, transparent, and helpful, social

audiences will learn that your business cares about its customers and potential

customers. One can position their company as a valuable resource by simply sharing

information like advice, tips, or just answering questions about the industry.

Page | 33

1.3 The Social India Statistics

Given the major changes in its internet user numbers as per the below data, here’s

how the situation in India looks today:

Table 1.1 India’s Snapshot

India’s Snapshot

Sr. No Particulars Results

1 Total Population : 1,220,800,359 Urban : 31 %

Rural : 69%

2 Internet Users : 213,000,000 Internet : 17%

3 Active Facebook Users : 90,000,000 Facebook : 7%

4 Active Mobile Subscriptions :

893,862,000

Mobile Subscription : 73%

Source: Wearesocial.sg Sources: US Central Bureau, ITU, Facebook for Jan’ 2014.

Table 1.2 India : Internet Indicators

India : Internet Indicators


1 Average time that internet users spend

using the internet each day through a

desktop or laptop

4 Hours 54 Minutes

2 Mobile internet penetration as a

percentage of total population

11 %

3 Average time that mobile internet users

spend using mobile internet each day

2 Hours 36 Minutes

Source : Wearesocial.sg Sources : US Central Bureau, ITU, Facebook for Jan’ 2014.

Page | 34

Table 1.3 India : Social indicators

India : Social Indicators

Sr. No Particulars Response

1 Social Media penetration as a

percentage of the total population

12%

2 Average time social media users

spend on social media each day

2 Hours 26 Minutes

3 Percentage of mobile users using

social media apps on their phone

57%

4 Percentage of mobile users using

location-based services

29%


Table 1.4 India: Social Media Use

India : Social Media Use

Sr. No. Particulars Results

1 Any Social Network Own An Account : 97%

Used in Past Month : 72%

2 Facebook Own An Account : 94%


3 Google + Own An Account : 78%


4 Twitter Own An Account : 67%


5 Linkedin Own An Account : 54%


6 Orkut Own An Account : 51%



Page | 35

Table 1.5 India : Mobile Users

India : Mobile Users


1 Total Number of Active Mobile

Users (Unique Individuals)

347 Millions

2 Mobile Penetration (Unique Users

as a percentage of Total

Population)

28.5%

3 Total Number of Active Mobile

Subscriptions (Connections)

883 Million

4 Average Number of Active Mobile

Subscriptions per unique user

2.54


Table 1.6 India : Contract Type

India : Contract type

Sr. No Particulars Response

1 Percentage of Total Mobile

Subscriptions that are pre-paid

95%


Subscriptions that are post-paid

5%


Subscriptions that are 3G

Connections

6%


Page | 36

Table 1.7 India : Smartphone Usage

India : Smartphone Usage


1 Smartphone penetration as a


13%

2 Smartphone users searching for

local information via their phone

95%

3 Smartphone users researching

products via their phone

91%

4 Smartphone users who have made

purchase via their phone

54%


Table 1.8 India : Mobile Statistics

India : Mobile Statistics


1 Number of Active Mobile

Broadband Subscriptions

59.8 Million

2 Mobile Broadband Subscriptions as

a percentage of the total population

4.9%

3 Active Social Media users

accessing social media on a mobile

device

72 Million

4 Penetration of mobile social as a


5.9%


Page | 37

India Leads Worldwide Social Networking Growth

Country set to control largest Facebook population worldwide. This year, eMarketer

estimates, 1.61 billion people will log in to social networking sites at least monthly,

from any electronic device. That’s a 14.2% gain on social networker numbers from

2012, and double-digit growth is expected to continue for another year. By 2017, 2.33

billion people will use social networks.

Currently, the highest penetration of social network users as a share of total

population occurs in the Netherlands, where 63.5% of all residents are social network

users; Norway follows just behind at 63.3%. Majorities of residents in Sweden, South

Korea, Denmark, the US, Finland, Canada and the UK also use social networking

sites monthly.

The fastest growth in social network usage is happening in less-developed markets,

however. India, with the highest growth this year, will increase user numbers by

37.4%, while Indonesia’s numbers will climb 28.7% and Mexico will grow its social

network user base by 21.1%.

All three of those countries are also high-growth areas for Facebook, the world’s

largest social network, which eMarketer estimates will reach a worldwide monthly

user base of 1.026 billion this year. The US remains the single country with the

greatest number of Facebook users, at 146.8 million this year, and India comes in a

distant second. But with India’s large population and high expected growth rate,

eMarketer believes it will develop the largest Facebook population of any country in

the world by 2016. (Since Facebook is banned in China, eMarketer assumes there are

no users of the social network in the country.)

Page | 38

Micro, Small and Medium enterprises (MSMEs) as discussed earlier play a key role in

the development of economies with their effective, efficient, flexible and pioneering

entrepreneurial spirit. The Micro & Small Enterprises, thus can enhance their social

media marketing skills to reach out the customers and achieve better future prospects.

1.4 The Concept of Social Consumer / Iconsumer

Consumer

A consumer is a person or group of people, such as a household, who are the final

users of products or services.

An individual who buys products or services for personal use and not for manufacture

or resale. A consumer is someone who can make the decision whether or not to

purchase an item at the store, and someone who can be influenced by marketing and

advertisements. Any time someone goes to a store and purchases a toy, shirt,

beverage, or anything else, they are making that decision as a consumer.

Consumer Behaviour

Consumer behaviour is a variety of processes and ways that people use to satisfy their

wants and needs. They define the way people select the services and products they

want and use for their lives. It is the decision-making process of buying.

Consumer behavior refers to how, where or why a person chooses to buy a product or

service or not to buy that product. These behaviors can be influenced by geography,

belief system.

A consumer may not act in isolation in the purchase, but rather may be influenced by

any of several people in various roles. The number of people involved in the buying

Page | 39

decision increases with the level of involvement and complexity of the buying

decision behaviour.

Consumer’s buyer behaviour and the resulting purchase decision are strongly

influenced by cultural, social, personal and psychological characteristics. An

understanding of the influence of these factors is essential for marketers in order to

develop suitable marketing mixes to appeal to the target customer.

Cultural factors include a consumer’s culture, subculture and social class. These

factors are often inherent in our values and decision processes.

Social factors include groups (reference groups, aspirational groups and member

groups), family, roles and status. This explains the outside influences of others on our

purchase decisions either directly or indirectly.

Personal factors include such variables as age and lifecycle stage, occupation,

economic circumstances, lifestyle (activities, interests, opinions and demographics),

personality and self-concept. These may explain why our preferences often change as

our `situation' changes.

Psychological factors affecting our purchase decision include motivation (Maslow's

hierarchy of needs), perception, learning, beliefs and attitudes.

Other people often influence a consumer’s purchase decision. The marketer needs to

know which people are involved in the buying decision and what role each person

plays, so that marketing strategies can also be aimed at these people. (Kotler et al,

1994).

Page | 40

SocialConsumer

Introduction

Twenty years ago, if one was dissatisfied with a company's product or business

practices, then probably they would stop buying from them. One might write an angry

letter, and even tell their friends and family not to patronize that business.

But the game has changed with social media. While one angry tweet may not make

much impact, the web allows customers to find and connect with like-minded parties.

Critical mass has never been more within consumers reach. At best, companies strive

to be more responsive. At worst, they now live in fear of these pools of discontent.

And the game changer is social consumer

The Social Consumer refers to a consumer that participates in social commerce, social

shopping, and consults with social media and social networks when making

purchasing decisions. Social consumerism implies the integration of the consumer's

social graph during the traditional shopping experience.

The term was first introduced by Pete Blackshaw, EVP of Digital Strategic Services

for the Nielsen Company at a Consumer 360 insight session in June 2010. The

concept of the Social Consumer was further developed by Brian Solis in his article

The Dawn of the Social Consumer. Fast Company recognized this rising demographic

and cultural shift soon after. The Social Consumer was also the focus of a research

report by the Pivot Conference titled Trends in Marketing to Social Consumers.

Page | 41

During the traditional sales cycle, social consumer characteristics can include:

1. Incorporating geo-location applications (such as Foursquare) to check-in .

2. Utilizing Twitter and Facebook as entry points to purchase.

3. Purchasing through collective coupon sites like Groupon or LivingSocial.

4. Consulting with social networks for recommendations.

Thus the behavior aspect of Social Consumers are:

1. Consumes information and learns about breaking news through sites like

Twitter and Facebook

2. Learns about new products through social channels and networks.

3. Is wise to unsolicited promotions and trusts only relevant information

4. Desires a conversation with the brand rather than one way ad messages.

5. Expects brands to be active in the same social media sites he/she hangs out in.

6. Wants brands to listen, engage and respond quickly

This Social consumer can also be called as Iconsumer and he eats, sleeps and lives

with social media.

Page | 42

CHAPTER II

Page | 43

REVIEW OF LITERATURE

What is Social Media?

1) Social media is the interaction among people in which they create, share or

exchange information and ideas in virtual communities and networks. Andreas

Kaplan and Michael Haenlein define social media as "a group of Internet-

based applications that build on the ideological and technological foundations

of Web 2.0, and that allow the creation and exchange of user-generated

content. Furthermore, social media depend on mobile and web-based

technologies to create highly interactive platforms through which individuals

and communities share, co-create, discuss, and modify user-generated content.

They introduce substantial and pervasive changes to communication between

organizations, communities, and individuals. Social media differ from

traditional or industrial media in many ways, including quality, reach,

frequency, usability, immediacy, and permanence. There are many effects that

stem from internet usage. According to Nielsen, internet users continue to

spend more time with social media sites than any other type of site.

2) Social media is the collective of online communications channels dedicated to

community-based input, interaction, content-sharing and collaboration.

Websites and applications dedicated to forums, microblogging, social

networking, social bookmarking, social curation, and wikis are among the

different types of social media.

3) Social media broadly defined consists of any online platform or channel for

user generated content. By this definition, for example, WordPress,

Sharepoint, and Lithium qualify as social media, as do YouTube, Facebook

Page | 44

and Twitter. Social media more narrowly defined includes only channels for

user-generated content, as distinguished from platforms, which are referred to

as social technologies. By this definition, for example, YouTube, Facebook,

and Twitter are social media, and WordPress, Sharepoint and Lithium are

social technologies. Joe Cothrel – Lithium Technologies, Inc.

4) Social media is digital content and interaction that is created by and between

people. Sam Decker – Mass Relevance

5) Social media is a shift in how we get our information. It used to be that we

would wait for the paper boy to throw our news on the doorstep (or into the

flowers) and we’d read the paper, front to back, with our morning coffee

before going to work. Now we get information, 24/7 and on the fly, from

anywhere. In the more traditional senses, online, on our phones, and through

the social platforms. Social media allows us to network, to find people with

like interests, and to meet people who can become friends or customers. It

flattens out the world and gives us access to people we never would have been

able to meet otherwise. Gini Dietrich – Arment Dietrich, Inc.

6) All the traditional media print, broadcast, search, and so on provide platforms

for delivery of ads near and around relevant content. Social media are

platforms for interaction and relationships, not content and ads. This is quite

similar to what Ted McConnell, General Manager-Interactive Marketing and

Innovation at Procter & Gamble Co. likes to say about social media. Bryan

Eisenberg – Author of Waiting for Your Cat to Bark (Affiliate link)

7) Markets have become conversations. Social media are the online platforms

and locations that provide a way for people to participate in these

conversations. For individuals it is a way to connect and share content with

Page | 45

friends and like-minded people. For businesses it’s a way to tap into what

people are saying about your brand, your product and/or your service,

participate in the conversations, be open to new ideas and then use these

insights to make better business decisions. Sally Falkow.

8) Social media is people’s conversations and actions online that can be mined by

advertisers for insights but not coerced to pass along marketing messages. It’s

the new form of media that does not exist until it happens and that cannot be

bought by advertisers to carry their messages. Dr. Augustine Fou – Marketing

Science Consulting Group, Inc.

9) Social media is the tools, services, and communication facilitating connection

between peers with common interests. Chris Garrett – Chrisg.com

10) Social media are the online technologies and practices that people use to share

content, opinions, insights, experiences, perspectives, and media themselves.

They are media for social interaction. Howard Greenstein – Social Media

Club-NYC

11) Social media is an ever-growing and evolving collection of online tools and

toys, platforms and applications that enable all of us to interact with and share

information. Increasingly, it’s both the connective tissue and neural net of the

Web. Ann Handley – MarketingProfs, Author with C.C. Chapman of Content

Rules (Affiliate link)

12) Social media is a reflection of conversations happening every day, whether at

the supermarket, a bar, the train, the watercooler or the playground. It just

allows for those conversations to reach a broader audience due to digital being

a megaphone for scale Sarah Hofstetter – 360i

Page | 46

13) Social media is online text, pictures, videos and links, shared amongst people

and organizations. Dave Kerpen – Likeable Media

14) Social media is not one thing. It’s five distinct things:

It’s a strategic tool for uncovering business insights.

It’s managing the influencers who are driving the conversation around

your brand.

It’s marketing that provides value and turns customers into evangelists.

It’s a critical component customer care.

It’s transforming your organization to meet the transparency and

humanity customers now expect of brands. Adam Kleinberg – Traction

15) Social media is digital, content-based communications based on the

interactions enabled by a plethora of web technologies. Rebecca Lieb, author

of The Truth About Search Engine Optimization (Affiliate link)

What is Micro and Small businesses?

In accordance with the provision of Micro, Small & Medium Enterprises

Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises

(MSME) are classified in two Classes:

(a) Manufacturing Enterprises- The enterprises engaged in the manufacture or

production of goods pertaining to any industry specified in the first schedule to the

Industries (Development and regulation) Act, 1951 or employing plant and machinery

in the process of value addition to the final product having a distinct name or

character or use. The Manufacturing Enterprise aredefined in terms of investment in

Plant & Machinery.

Page | 47

(b) Service Enterprises: The enterprises engaged in providing or rendering of

services and are defined in terms of investment in equipment

The limit for investment in plant and machinery / equipment for manufacturing /

service enterprises, as notified, vide S.O. 1642(E) dtd.29-09-2006 are as under:

Table 2.1 Micro Small and Medium Enterprise Act 2006

Manufacturing Sector

Enterprises Investment in plant & machinery

Micro Enterprises Does not exceed twenty five lakh rupees

Small Enterprises More than twenty five lakh rupees but does not exceed five crore rupees

Medium Enterprises More than five crore rupees but does not exceed ten crore rupees

Service Sector

Enterprises Investment in equipment’s

Micro Enterprises Does not exceed ten lakh rupees:

Small Enterprises More than ten lakh rupees but does not exceed two crore rupees

Medium Enterprises More than two crore rupees but does not exceed five core rupees

Source:http://www.dcmsme.gov.in/ssiindia/defination_msme.htm

Extracted 10/3/14

What is social media marketing?

Social media is a collection of online platforms and tools that people use to share

content, profiles, opinions, insights, experiences, perspectives and media itself,

facilitating conversations and interactions online between groups of people.

http://www.dcmsme.gov.in/ssiindia/defination_msme.htm

Page | 48

Social Media is the platform/tools.Social Networking is the act of connecting on

social media platforms.

Social Media Marketing is how businesses join the conversation in an authentic and

transparent way to build relationships. Doreen Moran – Digital and Social Marketing

Strategist

Social Media and its Role in Marketing

(SisiraNeti, 2 July 2011) Social Media, today, is among the ‘best opportunities

available’ to a brand for connecting with prospective consumers. Social media is the

medium to socialize. These new media win the trust of consumers by connecting with

them at a deeper level. Social media marketing is the new mantra for several brands

since early last year. Marketers are taking note of many different social media

opportunities and beginning to implement new social initiatives at a higher rate than

ever before. Social media marketing and the businesses that utilize it have become

more sophisticated. One cannot afford to have no presence on the social channels if

the competitor is making waves with its products and services. The explosion of

social media phenomenon is as mind boggling as that and the pace at which it is

growing is maddening. Global companies have recognized social media marketing as

a potential marketing platform, utilized them with innovations to power their

advertising campaign with social media marketing. This paper discusses about the

concepts of social media and social media marketing and other aspects like the growth

and benefits, role and relevance of social media in marketing, social media marketing

strategies. It also presents an overview on social media marketing in India.

Page | 49

The Implications of Facebook Marketing for Organizations

(March 2013)With the explosive popularity of Facebook as a social media, there has

not been much research that examines Facebook marketing and its implications for

businesses. This paper represents an exploratory effort into this direction and analyses

existing Facebook marketing practices and tools, their benefits, and concerns

associated with this type of social media marketing. Practical implications are

suggested for organizations using Facebook as a social marketing tool and areas for

future research are identified.

The Complementary Roles of Traditional and Social Media in Driving

Marketing Performance

(2014)The media landscape has dramatically changed over the past decade, with

traditional media (e.g., newspapers, television) now supplemented by social media

(e.g., blogs, discussion forums). This new media landscape is not well understood

with respect to (i) the joint impacts of traditional and social media on marketing

performance (e.g., sales), (ii) how these media types influence each other, and (iii) the

mechanisms through which they affect marketing outcomes. These issues are

examined with 14 months of daily performance data and media activity for a

microfinance website. The authors find that both traditional and social media have

strong effects on marketing performance, though a single unit of social media has a

much smaller effect than a single unit of traditional media. However, because social

media is created in larger volumes than traditional media, it has a sizeable effect on

performance (i.e., social media is high-volume, low-margin, whereas traditional

media is low-volume, high-margin). Further, social media acts as a broker of

Page | 50

information flow in an informal network comprising traditional and social media

outlets.

Social Media and its Impact on Consumers Behaviour

(ElisabetaIoanas, IvonaStoica, 2014) Technology gives consumer the power to

investigate products to label them and criticize them in equal measure, and more.

Therefore many companies today have pages on social networks to complement the

information held about products, held by the feedback of consumers about products

and tend to relate more to a company after reading various reviews. The paper is

related to the impact of social media on consumer behaviour, therefore it has been

made a quantitative research. The sample counted 116 respondents and from the

statistical perspective, the conclusions were established in terms of the univariate and

bivariate analysis. Following the analysis of the research variables we can make a

consumer profile that uses social networks. Likewise, after doing the complex

statistical analysis using SPSS and the analysis offered by the online platform the host

of questionnaire, it can be seen how much it is influenced and the real impact of social

media reflected in the behaviour changes.

The Influence of Social Networking Sites on Buying Behaviours of Millennial

(Sharon S. Pate, Adams) Social media sites have become an important part of

Millennials lives. According to the Pew Research Center (2010), Millennials' are

living their lives on the internet. Social media can be linked to a positive association

providing instrumental value that assists consumers in making decisions about

whatproduct to buy, when to buy, and where to buy (Weigand, 2009). With social

media becoming a large portion of the promotion mix, it is important to understand

Page | 51

the motivation behind buying behaviors and if social media plays a role in influencing

those behaviors. The purpose of this research was to determine the influence of social

networking sites influence on buying Behaviors of Millennials.

Does Social Media Affect Consumer Decision-Making?

(PatarawadeeSema, Professor Martin Sivula, July 30, 2013)Social media becomes an

important communication tool that people use to connect to other people or

organization. People use social media to share their experiences, reviews, information,

advice, warnings, tips and/or any kind of issues that are interesting to their

“connection” or friends. That information is a helpful source, which may Influence

consumer’s decision-making. Most of studies showed that people use information on

social media as the guideline for their future purchase or planning their future trip.

Also, social media is used as an advertising for the marketer. Marketers take this

advantage and create marketing strategy, which in turn could help them gain more

customers. The social media environment is very easy to apply and to reach the reach

customer. These benefits give persons convenience to achieve what they are looking

for. People tend to believe in what their friends recommend. Facebook, Twitter, or

Myspace is the most popular social media site that people share their lifestyle, stories,

or even where they went for vacation. Posting information could lead their friends to

do the same thing or use their information to make decisions. The goal of this research

report is to ascertain through a review of selected literature on social media its

influence on travelers' decision-making for their future vacations.

Page | 52

Social Media as a Marketing Tool: A Literature

(Abu Bashar, Irshad Ahmad, Mohammad Wasiq. November 2012) in today’s

technology driven world, social networking sites have become an avenue where

retailers can extend their marketing campaigns to a wider range of consumers. Chi

(2011, 46) defines social media marketing as a “connection between brands and

consumers, while offering a personal channel and currency for user centered

networking and social interaction.” The tools and approaches for communicating

with customers have changed greatly with the emergence of social media; therefore,

businesses must learn how to use social media in a way that is consistent with their

business plan (Mangold and Faulds 2099). This is especially true for companies

striving to gain a competitive advantage. This review examines current literature that

focuses on a retailer’s development and use of social media as an extension of their

marketing strategy. This phenomenon has only developed within the last decade, thus

social media research has largely focused on (1) defining what it is through the

explanation of new terminology and concepts that makeup its foundations, and (2)

exploring the impact of a company’s integration of social media on consumer

behavior. This paper begins with an explanation of terminology that defines social

media marketing, followed by a discussion of the four main themes found within

current research studies: Virtual Brand Communities, Consumers Attitudes and

Motives, User Generated Content, and Viral Advertising.

An empirical investigation of social network influence on consumer purchasing

decision: The case of Facebook

(Loredana Di Pietro, EleonoraPantano, July/September 2012)Social networks are

becoming an efficient tool for IT-based business, by providing several services for

Page | 53

both consumers and marketers. The aim of this paper is to investigate to what extend

social networks, as Facebook, influence consumer's purchasing decision through a

quantitative analysis, which integrates a revised technology acceptance model. The

findings confirm that enjoyment is a key determinant of social networks usage as tool

for supporting the purchasing decision. This research moves beyond social networks

usage to factors related to the Facebook-mediated marketing communications, by

providing significant data on the weight of this channel for the development of new

direct marketing strategies.

Essential Trends in Social Media Marketing in 2014

(Evan Prokop, Mar 30th, 2014) The energy was sky high at Social Media Marketing

World this year. Marketers, brands, consultants and business owners from over 40

different countries gathered together to learn about the latest innovations in social

media marketing, rub shoulders with social media rock stars, and enjoy unprecedented

networking opportunities. The opening keynote speech from the conference organizer

Michael Stelzner, had set the tone for the days to come, Michael discussed the trends

that he thinks will be making the biggest impact in social media marketing in 2014.

Smart marketers should take note, because his presentation was chock full of

excellent opportunities for businesses to increase the value they are getting from

social throughout the coming year and beyond. Below were four key takeaways:

Visual Content will be a HUGE focus in Social in 2014

From memes to info graphics to in-the-moment instagram images, brands big and

small are already getting huge engagement from visual content, and 2014 will be the

Page | 54

year that visual content truly takes over in social. According to research from Social

Media Examiner, 70% of marketers plan to increase their use of visual assets in 2014

Blogging will continue to Rule

Business blogging has seen a meteoric rise in the last few years, and all signs point to

the trend continuing in force in 2014. Unlike your social brand pages, a successful

business blog is a platform to own, and thus should serve as the hub of your social

presence.

Google Plus will graduate from Ghost Town to Metropolis

Google Plus had a somewhat rocky start, with many calling it a ghost town or

complaining that it was being forced upon YouTube users, but it’s come a long way

since. According to recent research from Social Media Examiner, Google+ tops the

list of social networks that marketers want to learn and master in 2014.

Podcasting will Dramatically Increase in Popularity and Reach

Starting out primarily as a means to increase registrations to SMMW, Michael

explained how the Social Media Marketing Podcast has turned into much more, and

today is one of his company’s most important marketing assets. Michael predicts that

soon all vehicles will have podcast support built in, making this a golden opportunity

for marketers and businesses to get in the podcasting game.

Social Media Campaign Can Swing 3%-4% of Votes

(IAMAI New Delhi, Oct 08, 2013): The number of social media users in Urban India

would reach 86 million in October this year, and 91 million by the end of this year,

Page | 55

according to the report ‘Social Media in India – 2013’ by the Internet and Mobile

Association Of India (IAMAI) and IMRB, released today. Social media users in urban

India are expected to grow by 19% between June and December this year. The report

further found that 19.8 million users use mobile phones to access social media

platforms in urban India.

Based on the number of eligible voters, data of actual voter turnout from the Election

Commission of India and field interviews, the report estimates that there could be a

vote swing of 3%-4% in 24 states – states where the internet users are sizeable. The

vote swingers can be pre-dominantly young men and non-working women whose

affiliation towards social media is high. Talking to representatives of major political

parties in India, the report also found that parties have earmarked around 2%-5% of

their election budgets for social media. While political parties are gradually investing

in social media, corporate have long realized the importance of the medium. The

corporates are spending nearly 13% of their digital advertising budget on social media

in FY2012-2013. It was only 10% in FY2011-12. Predictably, the report finds that the

highest proportion of social media usage in the Top 4 Metros & the Non Metros was

among the demographic segment Young Men with 30% and 26% penetration levels

respectively. Interestingly, the report finds that younger women are increasingly using

social media, whereas, in the Other Metros & Small Metros, College Going Students

show the highest proportion of social media usage. Working Women demographic

segment is observed as having the lowest proportion of social media usage in Other,

Small & Non-Metros whereas they show a moderate proportion of social media usage

in the Top 4 Metros.

Page | 56

Social Media Salesman

(YolandeD’Mello, Feb 8, 2014)Small businesses are finding that social media can

help run a one-man show of marketing, retail and research. Home bakers, housewives

and smart CEOs are meeting consumers who spend hours online through their

smartphones and computers to sell direct. Mirror gets small-time 'CEOs' to share their

marketing strategies:

NameetPotnis Behind: SellMojo, online store platform for social shopping Sells:

Exclusively through Facebook Strategy: Helps small businesses install 'buy' button to

retail via Facebook No. Of Clients: 700

MBA grad NameetPotnis was convinced that small-time businessmen on Facebook

needed to smoothen their act in online retail. According to him, Facebook marketing

is effective but the journey between a 'like' and sale is a long one and solution for that

is, a 'buy' button on the Facebook page.

Mystery Baker Behind: Sweetish House Mafia cookies Sells: Exclusively through

Facebook, Twitter Strategy: Keeps location, day and time of sale a mystery to up the

foodie's curiosity Sales: Rs 14,000 per week. In the last nine months, salivating

corporates and college students have been seen waiting for a blue Nano at odd spots

across SoBo, to pick up their batch of gourmet cookies. And social media has played

the perfect business partner.

SnehNihalani Behind: Radio Rani, concept clothing Sells: Exclusively through

Facebook, Twitter Strategy: Tempts consumer by frequently and regularly offering

fresh design teasers Sales: 35 sarees in 3 months. Facebook was copywriterwanting-

to-turn-full-timedesignerSnehNihalani's testing ground. Before she quit her job, she

made a Facebook page last November to showcase the concept sarees using the

Page | 57

Buddha and Draupadi prints she was creating. In three months, she has collected 800

followers, and has sold out two collections. This is no short of instant success,

considering each design from the Maha Rani collection costs Rs 19,500, while her

cotton Risky Rani pieces start at Rs 12,500. The growing buzz has brought online

commerce sites to her doorstep, and that's upped the number of hits her designs

receive, but each sale also means a cut for the middleman. According to her, this was

the first step following a full-fledged website.

The Rise Of Social Media Marketing

The rise of social media marketing can be attributed to the growing popularity of

social media among the urban, tech-savvy population. As the number of people

frequenting blogs, wikis, online communities, and social-networking sites continues

to increase, businesses are adopting social media to reach out to their consumers and

promote their products and services. Social media is redefining the way businesses are

implementing marketing campaigns. In this interview with Mr. Suresh Babu, the

founder of Online Marketing Enthusiast Community and a corporate web marketing

trainer who closely works with NSRCEL at IIM Bangalore, an attempt to gain an

insight into social media marketing in India and how this tool can be effectively used

by an entrepreneur or a market leader to promote and sustain businesses in the long

run. Various aspects were covered regarding social media marketing and the first one

was about:

Social Media Marketing Strategy

tejas@iimb asked that Social media marketing has been embraced by a number of

companies including some big names like P&G and Intel which operate in different

Page | 58

business areas so does social media marketing work equally well irrespective of the

kind and size of business say for B2C, B2B, SME and established brands?

Suresh babu replied, Social media marketing was absolutely necessary today. For a

bigger company it was easier in terms of visibility but at the same time it might be

difficult because of the different policies and approval requirements that they have. It

was relatively easier for small businesses. Social media marketing has several

advantages for small organizations. Since not many people are doing it now, they can

leverage the early mover advantage. Most of the social media sites are free, so in

terms of investment, there was hardly any cost involved except perhaps for time. It is

not very complicated- there is no need to be an expert programmer. Social media

marketing has several advantages for small organizations.

To illustrate with an example, a small florist can take videos of his customers

narrating their story behind the flowers, post information and pictures online which

people like you and me can access. Creating this user generated content is what social

media marketing is all about.

tejas@iimb asked, Social networking websites like Facebook and Twitter have more

than 250 million and 14 million registered users respectively. Over 346 million people

read blogs while 184 million people are active bloggers themselves. With so many

online platforms available today, what would be the best strategy for someone

venturing into the social media space for marketing? How does one decide upon

which online platform to start with?

On which sureshbabu replied that, the online platform varies with the kind of

business. Since sites like Facebook have the maximum users, it always helps to have a

presence on hugely popular sites. But it is also important to be active on these sites.

Page | 59

Specific businesses like travel for instance may choose their own verticals. They may

prefer sites which people visit only because they are passionate about travel. In order

to decide which platform to start with, it is essential that you first understand where

your potential audience is. If you see that there are a lot of discussions about

Bangalore or IIM students on Twitter and this is the segment you want to market to,

go with Twitter. Same with blogs. Identify popular blogs relevant to your service or

product and accordingly go up there.

The next aspect cleared was about Present Scenario - Indian Context

tejas@iimb asked, considering that a large percentage of the Indian population lives in

rural areas where the internet penetration is less, is it justified to hail social media

marketing as a tool for reaching out to large numbers of people? Even in the urban

areas, isn’t the target restricted by how tech-savvy the customer is?

To which Suresh Babu eagerly said, social media marketing does not depend on how

tech-savvy the audience is. It is more about awareness. Social media can have an

impact even in the rural areas. No one earlier imagined the immense penetration

levels that cell phones and televisions have today in rural India. Over a period of time

people tend to adapt to technology. Also in the future social media will reach the

masses through television and phone. The barrier for people to know how to use

internet will go down drastically. Already one can today access Facebook updates on

his/her mobiles. Education and awareness is nonetheless important. It will be the next

generation which will truly embrace social media in the rural space which is a huge

opportunity in itself.

Page | 60

20+ mind-blowing social media statistics revisited by E-consultancy

More than 700,000 local businesses have active Pages on Facebook. 70% of bloggers

are organically talking about brands on their blog, and 38% of them post brand or

product reviews. At its current rate, Twitter will process almost 10 billion tweets in

2010.

Social Marketing Lifts Organic Conversions by MarketingSherpa

According to MarketingSherpa research, marketers working in social media report an

average 27% conversion rate for organic search traffic, while those not using social

media reported a 17% rate. Adam T. Sutton concludes, that SEO is more effective at

attracting attention and ultimately converting people. However, social media is more

likely to increase positive thinking around a product and brand.

The Difference between Friends, Fans and Followers by Brian Solis

Brian Solis contends that, the future of business is tied to how the 3F’s (friends, fans

and followers) convert into the 4A’s, action, advisor, affinity, and advocacy,

regardless of network , And which tool works best for that? When asked if they were

more likely to purchase from a brand after becoming a subscriber, fan or follower,

37% of Twitter users said “yes” (strongly agreed), versus 17% of Facebook users and

27% of email subscribers. Asked if they would recommend a brand based on their

social media connection to it, 33% of Twitter users responded affirmatively versus

24% of email subscribers and just 21% of Facebook users.

Page | 61

Social Media Marketing by Pharmaceutical Industry: Perception and Attitudes

of Key Stakeholders

(P. Gupta, A.Udupa,April 30, 2011)The purpose of the study was to assess the

perception, attitudes and behavior of the key target consumer groups – doctors and

patients, regarding social media marketing by pharmaceutical industry. It is a cross-

sectional, questionnaire-based study done in 2 groups – 50 general practitioners and

250 patients, in Navi Mumbai (India) area, selected by random sampling. The results

highlighted that the awareness and acceptance of the concept of social media

marketing was high amongst both the doctors and the patients. Amongst doctors, it is

positively and significantly associated with young age and having a postgraduate

degree after MBBS. Amongst the patients, a high proportion take self-medication

based on reference to the internet, most common ailments for use of self-medication

being aches, respiratory illnesses and gastrointestinal illnesses. The increasing

positive response of the key consumer groups, especially in the young age group,

makes social media a powerful marketing tool, which can be explored by the

pharmaceutical industry.

Social Media Monitoring Tools

(Human Digital, 2011) The purpose of this report is to explore the role of monitoring

tools in the PR and Marketing industries. It aims to explore the validity of the data

provided, how effective the automated analytics are, and under what circumstances

would utilization of a monitoring tool be effective. Further, it explores whether

largescale harvesting of data is effective in developing a social media strategy, or

whether human analytics and targeted intelligence provides a more tailored, longterm

and useful strategy.

Page | 62

Social Media or Snake Oil: Does Social Media Measure Up to the Hype?

(G.M. Filisko, Jan 1 2011) A growing chorus of voices says yes when asked whether

the social media phenomenon overhyped? Critics argue there are no credible ways to

measure return on investment in social media. They also contend there’s no definitive

data showing that social media create business, or that the number of followers you

have on Twitter or friends on Face book translates into dollars earned. The

conundrum is that both the cynics and the cheerleaders may be right. Kevin O’Keefe,

CEO and publisher of Seattle-based Lexblog, which provides social media consulting

to law firms, says he does think there is too much hype about social media, as

according to him, there are a lot of people who don’t know what they’re talking about

creating a buzz about it. It’s terribly effective, and that doesn’t mean it’s not

overhyped.

Small Business Gets Serious: Digital Trends for Small Business in 2014

(22/01/2014) New Year comes a cautious view of the year's economic growth,

regulatory changes across a variety of industries and continued development in the

reliance on the Internet for personal and professional connection and communication.

It's an uncertain time for many businesses, but especially susceptible to falling behind

the curve are the many small businesses and mom and pop shops with already strained

budgets and resources.

So how can small businesses go from struggling to thrive? In large part, it comes

down to understanding the opportunities and trends that will present themselves in the

coming year. Small business owners know it isn't a game, it's their livelihood. It's time

to get serious about understanding and implementing plans to maximize business

opportunities.

Page | 63

Can Social Media Have an Impact on Small Businesses and How?

(Websadmin, 8th May)Small businesses across the country are set to increase the time

and effort they spend on social media marketing, but research on its effectiveness has

been mixed. A recent survey by one of the largest lending institutions in the US

discovered the majority of small-business executives found social networks no good

for expanding their business. However, according to the “Small Business Marketing

Forecast 2010″ sponsored Ad-ology, lead generation is the biggest benefit of social

networking. Social networks were also considered to be a great way to keep in-tune

with the industry, and to monitor communications about your brand. The chart below

illustrates the benefits to small business.

Education and Resources are lacking

Awareness of social media is certainly very high among small businesses – it’s

become the “talk of the town.” The problem is that businesses need to be educated

about how to set up and work with this new online phenomenon. But, there are other

mental “roadblocks” to getting the most from social media. Many businesses perceive

their customers do not use social networks. In fact, this sentiment was made by 31%

of respondents in a recent survey. Additionally, about 1/3 of respondents indicated

they didn’t have the internal resources to effectively execute a social media campaign.

Social Media is Adapting, and So Should You. Marketers and brands know that

purchases online begin with online searches, and social media is adapting to meet this

need. Approximately 46% of online users from around the world count on social

media when making a purchasing decision (Source: Nielsen). Facebook's new graph

search is key, acting like a local search engine within the social network. Allowing

users to conduct searches such as "pizza places in Connecticut that my friends like."

Page | 64

By searching through social media the experience is completely different. You are no

longer mindlessly picking a restaurant in the hope that it will be great. People are able

to see what places their friends like. According to a Morpace Omnibus Report, “A

whopping 68% of Facebook users say a recommendation from a Facebook friend

would make them more likely to buy a specific product or visit a certain retailer.”

After stumbling upon this hidden gem, all your friends love, it's now all about

creating a relationship. That's where the social aspect comes in handy. Users can now

search through the information on your page to learn about what specials you offer or

what items your loyal customers recommend. It doesn't get much better than that.

According to HubSpot's State of Inbound Marketing, 77% of B2C and 43% of B2C

companies say they've acquired customers through Facebook.

Twitter has also made local search a priority by introducing lead generation cards.

This feature allows businesses to create promoted offers. When a follower expands

the tweet the offer is shown. There are seven different types of Twitter cards

available. Depending on which card is selected the ability for more content, pictures, a

gallery of pictures, or even a media player are available.

Social Media Is Making a Big Impact on Small Business [INFOGRAPHIC]

(Shea Bennett, August 16, 2012)By Infographic we come to know that 73 percent of

small businesses are now using social media. Furthermore, four fifths (81 percent) of

these plan to further increase their social marketing efforts, and 62 percent of SMBs

not currently using these channels have said that they plan to do so in the next year.

Facebook leads the way, with 82 percent of social small businesses utilizing this

platform, ahead of YouTube (73 percent), Twitter (47 percent) and LinkedIn (47

Page | 65

percent). As much as social media has rapidly integrated itself into the business

world, it’s important to remember that the tried and tested marketing methods still

deliver for many brands. Indeed, website (95 percent) and email (91 percent) remain

the SMB digital marketing strategies of choice, and, perhaps surprisingly, more than

three quarters still rely on print advertising.

2.1 Research Gaps

Literature on effectiveness of social media marketing and consummation of social

media marketing is largely lacking in India. While large businesses can engage

services of market research firms to evaluate effectiveness of marketing services,

small-medium businesses tend to spend a fraction of their available capital on

marketing hence there is further lack of data on use of marketing via social media.

This work will attempt to explore following components:

Type of small business can add its value through social media marketing.

Methods followed to reach the target customers.

Effectiveness of social media marketing measured in terms of return on

investment.

Impact of use of social media on sales, effect on customer base, brand

visibility.

It is also equally important to investigate how the social media marketing is

consumed by the target consumers.

Page | 66

CHAPTER III

Page | 67

OBJECTIVES AND RESEARCH METHODOLOGY

3.1 Purpose of the study:

Social media was a completely new thing four years ago, many people did not know

what social media was and the effect it would have on our lives. It was an exciting

interactive medium which suddenly took the world by storm to such an extent that it

became something that no business, small or large, local or global, could afford to

ignore. Initially small businessman often found the prospect of online marketing a

daunting one, because it was difficult to know which areas to focus on. Thus social

media marketing being an extensive subject with a complex hierarch created an urge

to familiarize with it and to find the plan or strategy explored by the small and micro

business

The purpose of the research is to study, how Micro and Small businesses can leverage

social media to penetrate their markets, reach their customers and develop

relationships in a personal and direct manner that can catapult their brand and raise

their awareness as successfully at par with any large business. The study also throws

light on the influence of social media on consumer’s online buying decisions and

behaviour.

3.2 Research Objectives

To identify the various types of micro and small business using Social Media

for marketing

To study the impact of Social Media on Business Performance

Page | 68

To study the impact of various online promotional activities on the brand

visibility

To study performance of micro and small businesses after inclusion of social

media marketing

3.3 Research Hypothesis

H01:There is no association between use of social media and type ofbusiness.

H11: There is an association between use of social media and type of business.

H02: There is no association between frequency of use of social media and

Benefit to the business.

H12: There is an association between frequency of use of social media and

Benefit to the business

H03: There is no association between online promotional activities and benefit

to the business.

H13: There is an association between online promotional activities and benefit

to the business.

H04: There is no association between frequency of updates and increase in

customer base

H14: There is an association between frequency of updates and increase in

customer base

Research Type:

Exploratory research is initial research conducted to clarify and define the nature of a

problem which does not provide conclusive evidence and hence subsequent research

expected. The purpose of the study is to understand the phenomenon of social media

Page | 69

marketing and to acquire new insights into it. The results acquired from this study

cannot be generalized to the population at large, hence the study is said to be

exploratory research

3.4 Methods of data collection:

The Quantitative data collection method is being used so that the produced results are

easy to summarize, compare, and generalize. Data collectionhas been done using

Primary and Secondary methods.

Secondary data collection methods:

Various information has been collected by referring books, journals, newspaper

articles, research reports, dissertations, research papers, websites, online journals and

articles.

Primary data collection method:

Online research questionnaires were prepared for the survey, one for the small

business and other for the consumer, which were hosted respectively in the links

http://goo.gl/ddhcHf and http://goo.gl/zzVjPt.

Data Collection procedure

Online instruments designed solely for this study have been used to capture data from

the selected sample. The instrument has been developed using the Google form

service. A new Google account was created specifically for this project. New forms

were used for each case and data collected was used for analysis. Protection of the

identity of the respondents was maintained. The created links were uploaded on the

social sites and also sent to available contacts through messenger.

Page | 70

3.5 Research Instrument:

Two Structured questionnaires were prepared well in advance after checking and

supplementing previously accumulated data. Both the questionnaire have definite and

concrete questions.

Type of questions:

Questionnaire was categorized with Multiple Choice closed-ended questions as they

are ideal for calculating statistical data and percentages. Further specifically Closed-

Ended Importance Questions, Likert Questions, Dichotomous Questions, open ended

question to get descriptive information about the topic were asked to collect data and

achieve the purpose of study.

3.6 Sampling Method:

The study population covers all the consumers using social media and micro and

small businesses engaging in social media for business, which covers large population

and hence was difficult to collect data by census method, thus sampling method is

used to collect the information. Hence justified sampling is done.

Also taking into consideration the time, resources available, the collection of data

from big sample was also a step back, hence non-probability convenience sampling

method is used. Also Snowball sampling was used purposely where in one person

who qualifies to participate was asked to recommend several other people who have

the knowledge about social media, and so participant list increased thereon.

Page | 71

Table 3.1 Sample Size

Sample Size Consumers Retailers Total

Proposed 100 100 200

Collected 138 107 245

Less : Rejected ---- 8 8

Net Collection 138 99 237

3.7 Data Analysis

Hypothesis testing is done using chi-square and frequency tables generated through

SPSS, wherein associations are defined and hypothesis is accepted or rejected to study

the objectives. Also frequency tables along with pie charts were prepared for

graphical representations of variables to analyse the data collected.

3.8 Limitations of the study

1. Online questionnaire: This type of research is often quicker and less detailed.

The disadvantages of this method can be the exclusion of people who do not

have a computer or mobile and also require internet connection. Also the

validity of such surveys are questionable as people might be in a hurry to

complete it so might not give accurate responses and may not be willing to

share details.

2. Constraints of time and resources were inevitable.

3. Area of study for micro and small businesses was restricted to Mumbai to get

better insights of local market.

4. All the tools of social media engagement are not explored.

Page | 72

3.9 Future scope of the study

The present study is restricted to Mumbai city, which gives a scope for further study

to be conducted in other metropolitan cities and even other tier I cities.

Page | 73

CHAPTER IV

Page | 74

SOCIAL MEDIA MARKETING

4.1 Introduction

Social media marketing refers to the process of gaining website traffic or attention

through social media sites.

Social media marketing programs usually center on efforts to create content that

attracts attention and encourages readers to share it with their social networks. The

resulting electronic word of mouth (eWoM) refers to any statement consumers share

via the Internet (e.g., web sites, social networks, instant messages, news feeds) about

an event, product, service, brand or company. When the underlying message spreads

from user to user and presumably resonates because it appears to come from a trusted,

third-party source, as opposed to the brand or company itself, this form of marketing

results in earned media rather than paid media.

Social media marketing (SMM) is a form of Internet marketing that utilizes social

networking websites as a marketing tool. The goal of SMM is to produce content that

users will share with their social network to help a company increase brand exposure

and broaden customer reach.

Social Media Marketing is the process of reaching prospects and customers, and

acquiring traffic and visibility through social media sites such as Facebook, Twitter,

LinkedIn and many others.

Social media networks were relatively unheard of, businesses still preferred to market

their goods through physical media such as billboards, pamphlets and direct mail.

Page | 75

With past decade, social media has taken the world by storm, online marketing

replaced physical traditional marketing mediums, and is now replaced by Twitter,

Facebook, Pinterest and other social networks.

So the point is, one never know what the future holds; nobody could have predicted

we would have to be so reliant on social media websites as a means of

communication. But there’s one thing that has remained rigid since 2007; the rise of

social media marketing.

4.2 The Rise of Social Media Marketing

What can be a better example, Facebook became a $100 billion industry. The social

media website gets a significant portion of its revenue through online advertisements.

Companies pay handsome amount for their products to be advertised through social

media networks. Hard to believe but it might be much harder to believe the fact that

93% of marketers use social media just for business purposes. The rise of social

media marketing may be attributable to several factors, one of which is the large

consumer base, numbering to 1.3 billion users on Facebook alone. The other factors

include the customer information that the social media accounts hold, which can help

in targeting customers.

Social media marketing is the next big thing for micro and small businesses, but it is

not just about lead generation – it isabout relationship building. Social media

marketing is the knowledge and skill to gain Twitter followers, and then use Twitter

marketing to get them to buy. Social media marketing is the knowledge to set up a

Facebook fan, get Facebook fans, and then build relationships and start conversations

about your brand and products on Facebook. And social media marketing is all about

leveraging free social media tools to monitor your online reputation and build buzz.

Page | 76

One of the key components of social media marketing is social media optimization

(SMO). Like search engine optimization (SEO), Social media optimization is a

strategy for drawing new and unique visitors to a website. Social media optimisation

can be done two ways: adding social media links to content, such as RSS feeds and

sharing buttons or promoting activity through social media by updating statuses or

tweets, or blog posts.

Social media marketing helps a company get direct feedback from customers and

potential customers while making the company seem more personable. The

interactive parts of social media give customers the opportunity to ask questions or

voice complaints and feel they are being heard. This aspect of social media marketing

is called social customer relationship management (social CRM).

Social media marketing became more common with the increased popularity of

websites such as Twitter, Facebook, LinkedIn, and YouTube. Social media marketing

refers to marketing done through social media or social networking websites. While

most companies and organizations have their own websites, it can be difficult to reach

users who do not already know about the organization. Therefore, many organizations

have found it useful to also develop a presence on Web 2.0 websites, such as

Facebook, LinkedIn, and Twitter as well. Social media marketing provides a low cost

way for businesses to reach large numbers of users and gain brand recognition. Since

social networking websites already have large established online communities,

businesses and organizations can gain exposure by simply joining these websites.

Organizations can create custom social media profiles, then build their own

communities within these sites by adding users as friends or followers. Many

companies attract users by posting frequent updates and providing special offers

through their social media profile pages. While social media marketing is a powerful

Page | 77

online marketing tool, it is typically used to supplement other online marketing

methods rather than replace them. Since just about any company or business and join

a social networking website, it can be difficult to stand out from the crowd. Therefore,

most companies still rely on Web advertising and search engine optimization to

generate traffic to their websites. Social media marketing programs usually center on

efforts to create content that attracts attention and encourages readers to share it with

their social networks. A corporate message spreads from user to user and presumably

resonates because it appears to come from a trusted, third-party source, as opposed to

the brand or company itself. Hence, this form of marketing is driven by word-of-

mouth, meaning it results in earned media rather than paid media.

Social media has become a platform that is easily accessible to anyone with internet

access. Increased communication for organizations fosters brand awareness and often,

improved customer service. Additionally, social media serves as a relatively

inexpensive platform for organizations to implement marketing campaigns. Too many

people approach social media marketing as if it is a step-by-step process that must be

carried out checklist-style every day. As a result, one can see plenty of webmasters

posting a set number of status updates, following a certain number of new people and

sharing a specific number of articles, day in and day out.

4.3 Social Media Makes Sense for Startups and Small Businesses

The phenomenon social media has intrigued millions. Everyone is out there, doing it,

discussing it, exploring it as:

1) It is affordable – There is no need to shell out to start the profile/fan page of

business on Facebook or Twitter or any social media sites that convinces you as it

is for free.

Page | 78

2) Global - There is no limit to the reach that social platforms have. It is global.

3) Real Time Marketing – This is the ideal place to talk to your consumers and

became a part of their personal circle whenever one wants.

4) Building Human Networks – Like humans, small businesses thrive on social

connect. With the internet, interaction is no longer limited to the physical presence. It

is now possible to set up a huge human database with the click of a button.

5) Effective – One can actually measure the impact by seeing the physical number of

fans on the social media page, interacting, conversing and engaging with the business

Benefits of Social Media Marketing for Micro and Small Businesses

With the explosion of social media over the last few years, it might be hard pressed to

find a marketing expert who does not recommend social media as part of a holistic

marketing strategy. But, is it really worth the time and effort to build a social media

presence at this point.

There are simple ways a business can benefit from implementing an effective social

media marketing plan:

1. Social Media Can Reduce the Overall Marketing Costs

First and foremost, the ability to tweet a message or post something to Facebook is

dramatically more cost effective than running a paid advertisement or mailing

thousands of marketing pieces. However, there are also advanced advertising tools in

social media that allow to run a marketing campaign that is both keyword- and

demographic specific so that one can get the best bang for your marketing

Page | 79

2. Social Media Can Impact Organic Search Results

Social media does allow to broadcast the business content out to a wide range of

interested readers. Interested prospects then visit your content, enquire, tell their

friends, and ultimately link to it. Google and Bing both pay attention to social signals

like this and they rank links on the search results page.

3. With Social Media, Businesses Can Offer Better Customer Service

If the customer comments, concerns, and questions matter the most, then social media

would be extremely beneficial. Customers using one of the common platforms like

Facebook or Twitter can easily communicate directly and quick answer to them in a

public format lets other customers see your responsiveness.

4. With Social Media Self Online Personality can be designed

The idea is that social media is more like a cocktail party than a business meeting.

One will always do a lot better in a social situation if one is more like itself and less

like a corporate robot. Social media is a great way to display our business personality,

as well as behind-the-scenes information about us, our employees, our workspace, and

more. When you humanize the brand in this way, it makes it easier for consumers to

connect with us and develop loyalty.

5. Social Media allows the business to associate with other businesses.

The fact that one is able to connect directly to the consumer means one can use this

platform to also connect to other entrepreneurs and business owners. From possible

strategic business partners to new distributors, social media lets have real

conversations with actual people who might otherwise be socially or geographically

inaccessible in the real world.

Page | 80

6. Customers Can Validate the Business on Social Media

The idea behind allowing customers to correspond directly with us is so that they can

get the best customer service possible. When this occurs, it happens in a very public

forum that can be seen by other prospects. So when customers using the praises to

their friends it not only validates us, but increases the chances that someone else is

going to give you a shot next time they need your services.

7. With Social Media One Can Provide Value

The idea that we can provide a truly valuable service to our target market means we

are positioning ourselves as an expert in the industry. Whether that’s educational and

entertaining blogs, posts, or tweets, if we are solving a problem or providing

information, we’re adding value that customers will appreciate.

8. Social Media Lets One Gain the Competitive Advantage

If used correctly, social media can boost our search rankings, allow to provide better

customer service, build an effective online personality, connect with new business

partners, build connections, and validate professional standing all while providing

consumers with the value they want.

In fact, social media marketing represents a great opportunity to engage with

followers and generate both lifelong customers and the market research information

needed to keep our product and service offerings fresh.

In the end, online success truly depends on how smart one is to communicate online

with clear strategy to take benefit from multitude of resources

Page | 81

CHAPTER V

Page | 82

ENGAGEMENT METHODS

5.1 Introduction

The original purpose of businesses being on social media is to get a company’s

message out to as many people as possible, with the goal to gain as many followers as

possible. While these two aspects are still important when it comes to social media

marketing, marketers have come to find that one of the most powerful aspects of

social media is the opportunity to interact and engage with those that are

communicating with our brand. Engagement is even more important than developing

a large amount of followers or a large fan base because in a current environment

where segmented audiences are becoming more and more important, making a

connection with someone who is directly interested with the brand is much more

important than having a large following that may not do anything further with the

brand. In this chapter, we will go over what can actually be considered engagement on

social media as well as why it is so important to do so.

Meaning and Definition

Here is how a dictionary defines engagement:

1. The act of engaging or the state of being engaged.

2. Betrothal.

3. Something that serves to engage; a pledge.

4. A promise or agreement to be at a particular place at a particular time.

5. a. Employment, especially for a specified time.

b. A specific, often limited, period of employment.

6. A hostile encounter; a battle.

Page | 83

7. The condition of being in gear.

The word engagement has become a sort of buzz word in the social media world, we

hear it all the time. What does it actually mean though? Engagement is anything that

our audiences do to interact with our brand online, whether it be through comments,

shares, likes, checking in at your location, etc. This is how the fans engage with us. In

order to engage back, several things can be done as well. Of course, we can comment

back to any comments that a particular person leaves, but you can also return the

favor. For instance, if they like or share some of your content, we can like or share

something of theirs. One can even take it a step further by going and commenting on

some of their things once have noticed that they have liked some of ours. The point

here is to let those that are engaging know that they are noticed and we are interested

in them and their wants and needs as well.

Engagement in social media means the ability to reach out to and get response from a

company (as a consumer) or an audience (as a company). For instance, if one go onto

Twitter and post a question to a specific company (@Ebay, for example), one hope to

receive a response. That is engagement instant human.

Engagement is a conversation that is authentic and relationship-oriented. It is more

than just dialogue, as it creates a forum for multiple voices. Critical to engagement is

that it should be free of hidden agenda like any good relationship it needs to be

honest.

Today, companies are investing heavily on social media to keep in touch with target

customers as well as provide quick information about available products and other

related offerings.

Page | 84

Social media engagement is very important whether one is running a political

campaign, starting a business or pushing a certain cause. Many companies have

grown significantly by investing in social media networks.

Compared to Traditional Advertising

Traditional advertising is still effective but if one wishes to address our target market

in the most unique way, we have to try social media.

Social media engagement can instantly improve the relationship between companies

and followers or clients. Before, one may only communicate with clients through

telephone, email, posters, TV or radio. Today, the process has become much easier

since you can instantly relate with individuals and keep them informed by using the

various tools and features available on social media.

5.2 Importance of engagement in social media

It is a way to maintain and foster relationships with the existing fan base.

When they see that we have taken the time to notice them and hear what they

have to say, they will realize that they are important to us and we value them,

making them more likely to remain happy with our company.

Once the fans realize that we are engaging with them, they are likely to give

you further insight on what you are doing well and what you could improve

on since you have made it clear that they have your attention. This is

especially helpful for you because learning genuine pieces of information

from your consumers is always important.

It gives a better idea of where we stand and what we could do differently.

It will help to maintain the fan base, and spread our word even further.

Page | 85

Encouraging a feeling of belonging.

Helping to create trusted relationships in an increasingly digital, distributed

study environment.

Not only will engagement help us to maintain our fan base, it will help to spread our

word even further. This can be done through word of mouth, when a person expresses

their satisfaction after hearing back from the brand, or simply by someone seeing the

interaction on their own news feeds. When someone likes or comments on something

of ours, someone who may not necessarily be following us will see this interaction,

making them more inclined to want to see more, especially if they see a response from

us. People are easily influenced by their friends, so this is very important.

Clearly, these thoughts as applied to a corporate communication come with many

constraints, but if engagement can be maximized within these constraints, a company

can distinguish itself to a great degree. There are enormous unspecified and

unforeseeable benefits to such participation.

Engagement is more than just a channel. It is a dialogue; it is the ability to choose

how and when to engage; it is the value each channel represents; it is whether or not

expectations were met.

Social networks are like socializing in real life, if we want to talk to someone, we go

talk to them, or give them reason to talk to us. If we want engagement, we talk, we

listen and listen and listen, then respond. The ‘social’ part of ‘social media’ is just

that, and one cannot forget it. If we look at the evolution of communications from a

very basic perspective, it is quite obvious why social media has become so important.

Think back to the 70’s, when our parents were watching TV. They had no remote

control. They had to sit through advertisements. Ads were forced onto them, exposing

Page | 86

them to your brand was, in relative terms, easy, because they had to watch or get up

off the couch and switch the station. Then came the remote control, a revolution in

TV viewing. People could switch channels if the ads weren't appealing. Brands had to

work that bit harder, TV ads got more entertaining, incorporated more storytelling

elements because if they did not, viewers would just switch. Then came cable TV, no

ads. Brands had to work harder again, better quality ad campaigns, increased

storytelling. Now hardly anyone watches TV advertisements. The next generation of

consumers do not know anything about 'the old days’. They are used to switching off

if they do not like the message. You tweet something they do not agree with, they

follow you. They are not interested in what is on TV, they go to YouTube. Everything

is immediate and they are used to creating a world of their own, where they only have

to see and hear what they choose. And you need them to choose your brand. This is

where the importance of brand identity comes in. Product alone, price alone these

things most likely would not be enough. The brand needs to be accepted, sought after.

The audience needs to know who we are and what we stand for. And with more and

more people active on social media, getting their news, their updates, participating in

more and more of their daily interactions online, this is where one need to be to

connect with them. This is why content is crucial in social media. This is why

engagement is crucial. Because it is YOU. Who you are is as important as what you

do. It is your way into their world. The power of engagement cannot be understated as

a means of strengthening relationships and trust in the brand, and social media is the

best platform to facilitate this. It is immediate, it is accessible, it is where the audience

is already at.

Social Media Engagement: The Surprising Facts about How Much Time People

Spend on the Major Social Networks:

Page | 87

People adopt newer social networks, and people’s social activity becomes

increasingly fragmented, other measures of social network activity become more

important, especially for businesses trying to determine where to best allocate time

and resources. How much time users spend on each social network and how engaged

and interactive they are with content there are increasingly important ways of

evaluating the sites. In a new report, (BI) Business Insider Intelligence calculates an

Engagement Index for top major social networks and compares their performance in

terms of time-spend terms per-user, on desktop and mobile. It also looks at how the

different top activities on social media - photo-sharing, status updates, etc. are

indexing in terms of activity, and which sites drive the highest volume in each

category. This report complements popular reports on social media demographics and

global audience sizes.

Findings of report:

Social is now the top Internet activity: People spend an average of 37 minutes daily

on social media, a higher time-spend than any other major Internet activity, including

email.

Social-mobile rules: 60% or so of social media time is spent not on desktop computers

but on smartphones and tablets.

Facebook has a monster lead in engagement: Facebook is a terrific absorber of

audiences’ time and attention, 114 billion minutes a month in the United States alone,

on desktop PCs and smartphones. By comparison, Instagram commands 8 billion

minutes a month, and Twitter just 5.3 billion.

Page | 88

Facebook attracts roughly seven times the engagement that Twitter does, when

looking at both smartphone and PC usage, in per-user terms.

Pinterest, Tumblr and LinkedIn have made major successful pushes in 2013 to

increase engagement on their mobile sites and apps. The new race in social media is

not for audience per se, but for multi-device engagement.

Multi-device social media: Analysis is based on BI Intelligence's social media

Engagement Index, which compares the effectiveness of social networks in keeping

individual users engaged across smartphones and desktop PCs. Here are PC-

smartphone Engagement Index scores for five platforms:

Table 5.1 : PC-Smartphone Engagement Index

Facebook 50.7

Instagram 13.5

Twitter 7.4

Snapchat 6.6

WhatsApp 4.6

Source: businessinsider.com,socialmedia engagement statistics 2012-13

5.3 Popular Social Media tools and Engagement methods

Facebook: Mark Zuckerberg founded the Facebook while studying at Harward

University. MrZuckerberg is a computer programmer and starts "The facebook", in

February 2004.Features of Facebook:

Basic feature, Create new account, advance features, to create a page, group, or event

for your business.

Page | 89

Navigation Bar: Clicking the word in the navigation bar will take right to current

newsfeed.

Icons: Facebook user to start the send friend request and messages, little numbers to

appears this icons indicating that news friends to approve and new message to read.

Bar Search: Find friends, places or things on Facebook

Your Page: Profile Image and Your name. It can be seen by others too.

Find Friends: Find friend’s option available on the top of Navigation bar.

Home: In the home we can find personal navigation menu and updates all the people,

pages, and groups connected to.

Setting/Admin Menu: This feature will appear to as a little arrow on the right side of

page wherein one can adjust what to share with others.

Account Settings: In the general account setting you can adjust the information by

visiting the Account setting. This is where manage the security, notification, apps and

more.

Privacy Setting: This setting can control who can find you, as well as who can see

your updates, photos, and other information.

Facebook has completed monthly visitor 900,000,000.

Page | 90

Table 2.2: Facebook Statistics

Facebook Statistics Data

Total number of monthly active Facebook users 1,310,000,000

Total number of mobile Facebook users 680,000,000

Increase in Facebook users from 2012 to 2013 22 %

Total number of minutes spent on Facebook each month 640,000,000

Percent of all Facebook users who log on in any given day 48 %

Average time spent on Facebook per visit 18 minutes

Total number of Facebook pages 54,200,000

Facebook Demographics Data

Percent of 18-34 year olds who check Facebook when they wake up 48 %

Percent of 18-34 year olds who check Facebook before they get out

of bed 28 %

Average number of friends per facebook user 130

Average number of pages, groups, and events a user is connected to 80

Average number of photos uploaded per day 205

Number of fake Facebook profiles 81,000,000

Page | 91

Global Facebook Reach Statistics

Number of languages available on the Facebook site 70

Percent of Facebook users who are outside the United States 75 %

Number of users who helped translate Facebook 300,000

Facebook Platform Statistics

Average number of aps installed on Facebook each day 20 million

Total number of apps and websites integrated with Facebook 7 million

Every 20 Minutes on Facebook

Links shared 1 million

Friends requested 2 million

Messages sent 3 million

Facebook Company Statistics Data

Total number of Facebook employees 4,619

Total 2012 Facebook revenue $5,090,000,000

Total 2013 Facebook revenue $6,150,000,000

Source: Facebook, 1/1/2014

According to a survey conducted by The Creative Group, more than 50% of

advertising and marketing executives said they expect companies to increase their

investment in Facebook this year. Facebook page tested engagement methods:

Page | 92

Add featured stories to the company’s Timeline – Stories running across the

width of company’s profile to highlight company milestones is done for

engagement to generate more interest than standard posts.

Ask engaging questions once a day – Leading question asked once a day, so

that visitors get in the habit of engaging with the brand profile.

Post shareable pictures – People love to share pictures, so either create their

own or find interesting, royalty-free images for the visitors to share.

Offer incentives to like the Page – An application is created that leads visitors

to a special discount code or free giveaway product in exchange for a

Facebook “Like.”

Advertise for “Likes” on Facebook – Instead of running Facebook ads that

lead to the website, advertisements that encourage users to “Like” the page are

posted.

Rotate the Facebook ads daily – Facebook Ads suffer from high burnout rates,

so rotating the ads every day to keep engagement high is tried.

Add a “Follow Us on Facebook” link to your email newsletters – Any time

when reaching out to the customers, an encouragement and a link back to the

profile is included.

Add social sharing icons to the blog posts – Considering visitors to be busy

people, social sharing icons on each post are shared by including the content

for them to be easy.

Connect your Facebook profile to the blog to auto-post new content – The new

“Facebook for WordPress” plugin is made to ensure that Facebook fans are

able to connect with all the new content.

Page | 93

Customizing Timeline application graphics – Own custom images are added to

the timeline of Facebook to create a consistent brand image and a greater

connection between the brand and the audience.

Post exclusive video content to the Page – Unique content is shared with the

Facebook fans to keep them coming back for more.

Ask fans to share brands profile with others – Sometimes, a direct request is

made to leverage the existing subscribers as one of the best way to build the

fan base.

Respond to follower comments on the Page – All comments left on the profile

are responded to demonstrate interest in what the fans have said.

Develop our own social engagement Facebook app – Fan engagement is taken

to the next level by offering unique, interactive application that provide

additional value to users.

Update the profile and cover pictures regularly – Keeping things fresh on the

Timeline shows the readers the commitment of maintaining brands social

networking presence.

Experiment with promoted posts – Facebook’s promoted posts is done in

Twitter: Twitter is the type of social networking site than registered for user to send

and read tweets. Unregistered user can only read text. Text message limited to 140

character. Twitter is the most popular social networking site but it began as a another

micro blogging platform created by the programmers who work as a podcasting

company Odeo Inc. Sanfrancisco, California. Twitter name was inspired by the photo-

sharing site, Flicker, and considerations were FriendStlker and Dodgeball. The

Twitter message limit was set 140 characters because 160 characters was the SMS

Carrier limit and they wanted to leave for the username. Twitter has changed political

Page | 94

communication inveterately. Twitters is very effective for business as brands and find

a new way to reach their fans and where they are social media on their smart phones.

Twitter has a tool to use business large and small to reach their target. It is way to

touch every day to fans who connected to the Twitter. In the present day Twitter had

200 million users and 4, 60,000 user joint the Twitter every day. And more than 140

million tweets every day. Twitter engagement methods:

Follow new people every day using authority figure follower lists – Lists of

people are browsed to know who are following brands authority figures to find

new people to follow.

Pre-load tweets to launch throughout the day – Even if one cannot be on

Twitter every day, pre-loaded posts through services like the Buffer

Application are deployed to keep engagement high.

Use Tweriod to uncover the followers most active times – Instead of wasting

effort when the visitors are not active, services like Tweriod are used to find

the best times to engage.

Set up follower lists –Twitter followers can be segmented into lists so that

unique messages to each group can be deployed, resulting in higher levels of

engagement.

Change the profile picture from the logo to face – The size of Twitter profile

picture makes it better suited to faces than logos so as an added bonus, people

naturally tend to engage better with faces than with any other type of image.

Create a custom profile background – Twitter’s stock backgrounds are fine,

but a custom background shows the committed to engaging with your network

on the service.

Page | 95

Seek out opportunities to answer audience questions – The questions posted

by the followers are browsed and answered as many as possible.

Update bio regularly – Twitter bio has a major impact on how many people

decide to follow you, so it is updated regularly to keep it fresh and engaging.

Build a custom Twitter landing page on your website – A page is added to the

website that provides a special welcome to Twitter visitors and link to this

page is from within Twitter profile.

Search for mentions of brand name – Twitter is searched periodically for any

mentions of brand name that are posted without username or hashtag in order

to find opportunities to engage.

Regularly clean up following list – The list of people followed is kept fresh by

periodically weeding out inactive or closed accounts.

Host a tweetup or Twitter chat – A tweetup or Twitter chat is hosted a great

way to boost engagement with the brand.

Use bit.ly to “split test” different Twitter promotions – To test how well

different promotions are received by the audience by similar announcements at

the same time using two different Bit.ly links are posted.

Capitalize on top tweets – The “Top Tweets” feature on Twitter is used to find

good tweets to re-tweet to the audience.

Create posts based on tailored trends – An eye is kept on Twitter’s new

tailored trends feature, which creates unique trend announcements based on

your location and who you follow, to find engaging topics of discussion for

the profile.

Google+: Google + is a Social Networking site. Google +was launched on June 28,

2011. Google + was created by the Google. It is the second highest social networking

Page | 96

site in the word after Facebook. 540 million monthly active user are part of the

Google+. Google + estimate monthly visitor 120,000,000.

Top Five features of Google plus

Redesigned Stream: Google plus Provide the features of re-designed stream. In this

features provide the multi-column design this allows users to scan more post at once.

Related Hashtags: Google plus provide the Hashtags features. This feature helps

people to find and join conversations about a particular topic.

Hangouts App: Google Plus also provides the feature of Hangouts App. This feature

displays the list of conversation. On the bottom icon of the screen indicate when

friends are typing and how long they’ve been in the conversation.

Cloud Integration: Google plus provide the Cloud Integration features. In this features

Google unveiled photo improvements that will be implemented in to Google Plus,

including auto enhancement and cloud integration.

Photo Editing Tools: Google Plus provides the Photo Editing Tools features. In this

features to edit the photo.

Google + engagement methods:

Set up all relevant Google+ properties – Google+ Page, is set up for the

business qualified for it. If not, as much information as possible is built within

personal profile.

Page | 97

Update your Google+ “rel author” settings – Follow the steps listed here to

connect your Google+ profile to your published content in order to claim your

“rel=author” benefits.

Add the Google+ Share Button to your website – Recently, Google+ launched

a new share button to make distributing content on this social network even

easier. Check it out if you aren’t already using a social sharing tool on your

blog.

Optimize your Google+ profile images – Google+ profiles and Pages offer

several different places to add your own images. Take advantage of all of

these options to make your profiles more visually appealing.

Make use of Google+ enhanced photo and video albums -- Google+ now

supports full-bleed photos and videos, so the content for the followers is

displayed.

Follow industry leaders in related niche – The thought leaders in related niche

are followed and engaged as a part of the conversation within industry.

Participate in industry hangouts – Whenever possible people try to join in

hangouts hosted by related industry, in order to engage with new people on

Google+.

Host own Google+ hangouts -- Own Google+ hangouts are hosted regularly to

give followers access to your knowledge and experience.

Run Google+ Hangouts On Air – To quickly and easily build a following on

both Google+ and Youtube, Hangouts are run on Air.

Curate content recommendations on the profile – Regularly scan through top

articles in the industry are scanned and shared regularly on Google+ profile in

order to increase engagement with followers.

Page | 98

Comment on other peoples’ content – Other peoples interesting post are

commented on Google+ and shared it with own followers to boost perceived

authority.

Cross promote your business with other Google+ users – Other Google+ users

are partnered up in order to share each other’s content and recommend each

other to the followers.

Become funny – People like to read and share funny things,so jokes and

comments to Google+ profile are tried to when appropriate.

Share product reviews – Product reviews are posted to Google+ profile in

order to minimize the amount of research for busy followers do on their own.

This being a quick way to build a fan base.

Solicit feedback for future product or service developments – The care for

follower’s contributions can be demonstrated by soliciting and implementing

their advice on future product or service developments.

Encourage followers to “+1” your content – Because the number of “+1” votes

your content receives may impact your SERPs placement, ask followers to

vote for the articles you share on your profile.

Stay on top of popular memes -- A funny new meme is shared in a great way

to demonstrate to the followers the engagement with current popular culture.

Use Google+ to promote customer surveys – Surveys to gather customer

feedback are set up to conduct cheap, effective market research. Once done

the survey, Google+ profile is used to promote them to followers.

Monitor Google+ activity using Google Analytics and Google Webmaster

Tools – Both of these Google products are reviewed to report various social

Page | 99

networking performance metrics, to find new opportunities to engage with the

audience.

Linkedin: LinkedIn is another social networking site. This site is founded in

December 2002 and uploaded on May 5, 2003. LinkedIn founders Reid Hoffman,

Allen Blue, Guericks, Konstantin. In 2006 there are 20 million users. In present days

225 million members, and its growing more than two members per second.

LinkedIn Features

Mentions: It is very similar to facebook and very useful to conversation with

someone.

LinkedIn Search: LinkedIn Search Option is very important feature to use and very

helpful to Professional and their businesses. In LinkedIn you can discover new people

and companies with that you build relationships.

Company Pages: This is very important feature. A business starts a company page of

its own. With this feature business tends to reach more people and get more

engagement. HP Company first to cross the 1 million follower’s line.

Get Introduced: Get Introduced is the feature with this feature, connection can be

searched to find someone who would like to be connected. This feature can really

help of one’s business.

LinkedIn Signal: LinkedIn Signal is a great feature to find out what one wants to.

This feature is not limited to search just keyword, but location, topics, others adding

up to ten filters can be used.

Page | 100

Groups Liked: Groups are great tools for meeting, new people and establishing

relevant connection, and establishing oneself.

LinkedIn Recommendations: LinkedIn Provide Recommend features, basically one

can recommend each other user and also the user can see that endorsement.

Common Interest: In this feature everything common in another users can be seen. So

when handled carefully potential connections that count turn in to potential clients.

Rich Media Tool: In this tool one can now add different, types of media, such as

video and presentation, to summary, Experience and Education Fields.

Sharing Bookmarketlet: In the Sharing Bookmarketlet, webpage can be shared

without connection even if not on LinkedIn. It is very easy to share anything one

might find on the web in just second.

LinkedIn Ads: LinkedIn Ads mentions that the business can be advertised on their

website. Another thing is that Ad Campaigns are highly targeted and they can be very

cheap.

LinkedIn Engagement methods:

Keep In Touch

LinkedIn is a social network and a two way communication venue. Other peoples

profiles can be perused as others can check as well. People try to maximize the

established connection by sending messages to a set of individuals regularly. Status

updates are used to provide useful information to those in the industry to explore the

expertise of the brand.

Become the Resource

Page | 101

Brand strives to learn about your niche industry, target audience and trends. The more

one knows, the more is shared and help others, thus try to act as resource provider to

trust with the business. Insights in on-and-offline conversations are shared, and also

consider to send clients tidbits of information as found them online. Specific

individuals are tagged those getting benefit from the information. For example,

organization compiled client case studies, and posted them on LinkedIn via Slideshare

and tagged specific individuals they know who will benefit from your report.

Inspire Trust

Since LinkedIn is a platform where professionals can interact with and ask questions,

to build trust in the brand the time taken to answer questions, interact with

connections and consistently post valuable information. Over time people recognize

you as an expert in your field and that you can be trusted to get the job done.

Becoming Transparent

Transparency becomes necessary as it assists in making prospective clients feel

comfortable. People are wary. They fear being scammed or spending money and time

on an inferior product or service. So to make them feel secured the offerings and

testimonials from those who have benefited from the services are showcased.

In the context of the social web, engagement means that customers and stakeholders

are participants rather than viewers. Social media in business allows anyone and

everyone to express and share an opinion or an idea somewhere along the business’s

path to market. Each participating customer becomes part of the marketing

department, as other customers read their comments or reviews. The engagement

process is then fundamental to successful social media marketing as trust is

Page | 102

imperative to the success of any business. If trust in your brand is lost, then you lose

business and, if you lose business, then you’re out of business.

Pinterest: Pinterest was launched in 2010. Pinterest is the third most popular social

networking site in the word, behind facebook and Twitter. It is one of the fastest

growing social networking site today. Pinterest is all about collecting and sharing the

different things one finds on the web. Pinterest a short of digital bulletin board or

scrapbook for collecting the things found online. Pinterest make it easy to save and

organize it. It can also be seen some of its largest growth is from retailers and

businesses. In Pinterest companies are excited to see Pinterest users pinning their

products. Retailers have also been able to use Pinterest to develop a brand identity.

Women account of Pinterest is 65% on the world. Pinterest sees over 11 million

unique visitor every month. In US 70% people to buy an item to find the Pinterest.

Pinterest is winning the hearts and pocketbooks of today’s consumer. It is one of the

most popular and visual social networking channels in use today.

Pinterest Engagement methods:

Create unusual pinboards

For example. A bakery adds pinboards for cupcakes, wedding cakes and other baked

goods. But more unusual topics, like the world’s oldest pastry recipes, campground

baking or ways to dress up products attracts the customers which help stand out from

the crowd.

Develop visuals in languages other than English

Page | 103

Inspiring quotes, brief tutorials and advertising taglines all make great pins that let the

international customers know they are cared. Before pinning anything, it is run past a

native speaker of the language to make sure the wording is accurate.

Ask people to show the things

People love to talk about themselves, so customers are asked to pin images of

something related to the industry. Example: A fitness club asked followers to post

pictures of favorite workout gear, while an office supply company invited followers to

share photos of their workspaces.

Tell a story

A dedicated storyboard to unfold a tale over several days or weeks. A mascot is send

on a journey around the major landmarks of the town or share a series of pins that

demonstrate how a customer used the product to solve a problem. Example: UNICEF

captivated over 1,600 followers by creating a pinboard for an underprivileged young

girl in Sierra Leone and pinning pictures of things she might wish she had access to,

like running water and shoes. A story that tugged at heart strings to encourage viewers

to donate to a cause.

To conclude Pinterest can be a perfect format for telling captivating stories that keep

followers coming back to see how those stories turns out.

Engagement has easily become one of the most important aspects of social media

marketing, and it is something that definitely should not be ignored.

Page | 104

CHAPTER VI

Page | 105

DATA ANALYSIS AND FINDINGS

I] DATA ANALYSIS OF MICRO AND SMALLBUSINESS:

1. Users of Social Media

Source: Researchers Analysis

The above table indicates that out of 99 online respondents 35 were found not to be

using social media for business and 64 were using social media and the same is

represented through chart as shown below:

Figure 6.1 Small Business Using Social Media

35%

65%

SMALL BUSINESSES USING SOCIAL MEDIA FOR THEIR BUSINESS

No

Yes

Table 6.1 Small Businesses using Social Media for Business

Small Businesses

using Social Media

for Business

Frequency Percent Valid Percent Cumulative

Percent

Valid

No 35 35.4 35.4 35.4

Yes 64 64.6 64.6 100.0

Total 99 100.0 100.0

Page | 106

2. Types of business using the social media

Table 6.2 Type of business

Type of business Frequency Percent Valid

Percent

Cumulative

Percent

Valid

Customer

service 48 48.5 48.5 48.5

Distribution 11 11.1 11.1 59.6

Manufacturing 8 8.1 8.1 67.7

Retailing 32 32.3 32.3 100.0

Total 99 100.0 100.0


The above table indicates that out of the 99 respondents 48 pertained to customer

service, 32 pertained to retailing and so on which indicates the use of social media is

maximum in service industry and minimum in distribution.

The same is represented in Pie Chart below :-

Figure 6.2 Types of Business

49%

11%

8%

32%

TYPES OF BUSINESS

Customer service

Distribution

Manufacturing

Retailing

Page | 107

3. Average customer prior to use of social media


The above table shows 38 respondents had customers more than 200 and 34

respondents had customers less than 50 which indicates the variance in the scale of

business may be due to various factors such as type of business, start up or any other

reason. The same is represented in Pie Chart below :-

Figure 6.3 Average Customers Prior using Social Media

7% 4%

16%

34%

39%

AVERAGE CUSTOMERS PRIOR TO SOCIAL MEDIA

100- 200

150 - 200

50 - 100

less than 50

more than 200

Table 6.3 Average customer prior social media

Average customer prior

social media

Frequency Percen

t

Valid

Percent

Cumulative

Percent

more than 200 38 38.4 38.4 100.0

Valid

150 – 200 7 7.1 7.1 7.1

100 – 150 4 4.0 4.0 11.1

50 – 100 16 16.2 16.2 27.3

less than 50 34 34.3 34.3 61.6

Total 99 100.0 100.0

Page | 108

4. Use of Engagement tools:

Table 6.4 Use of Engagement tools

Sr. no Type of social media Yes No Total

1 Facebook 60 4 64

2 Twitter 33 31 64

3 Youtube 20 44 64

4 Linkedin 31 33 64

5 Blog 20 44 64

6 Others 15 49 64


Figure 6.4 Use of Engagement Tools

60

33

20

31

20 15

4

31

44

33

44 49

0

10

20

30

40

50

60

70

Facebook Twitter Youtube Linkedin Blog Others

Nu

mb

er

of

resp

on

de

nts

USE OF ENGAGEMENT TOOLS

Yes

No

Page | 109

5. Initial Investment


The above table shows that 40 respondents have made initial investment between 0-5

lakhs and 14 respondents have invested 15-20 lakhs, which indicates that majority of

the micro and small businesses have made very less investment and at such scale also

they are promoting their business by social media.

The pie- chart below also indicates the same.

Figure 6.5 Initial Investment

63% 9%

6%

22%

INITIAL INVESTMENT

00-05 lakhs

05-10 lakhs

10-15 lakhs

15-20 lakhs

Table 6.5 Initial Investment

Initial Investment Frequency Percent Valid

Percent

Cumulative

Percent

Valid

00-05 lakhs 40 62.5 62.5 62.5

05-10 lakhs 6 9.4 9.4 71.9

10-15 lakhs 4 6.3 6.3 78.1

15-20 lakhs 14 21.9 21.9 100.0

Total 64 100.0 100.0

Page | 110

3% 9%

11%

69%

8%

OBJECTIVE OF USING SM

Build community

Customer service

Generate leads

Platform to highlight branddevelopment/news

Research

6. Objective of Using Social Media


The above table shows that 44 respondents are using social media for highlighting

brand and 7 respondents for generating leads which indicates the main purpose of

using social media is highlighting all the information about their product or service

and increase brand awareness and visibility.

Figure 6.6

Table 6.6 Objective of Using Social Media

Objective of Using Social

Media


Percent

Valid

Build community 2 3.1 3.1 3.1

Customer service 6 9.4 9.4 12.5

Generate leads 7 10.9 10.9 23.4

Platform to highlight

brand

development/news

44 68.8 68.8 92.2

Research 5 7.8 7.8 100.0

Total 64 100.0 100.0

Page | 111

7. Frequency of using Social Media

Table 6.7 Frequency of Using Social Media

Frequency of using Social

Media

Frequency Percent Valid Percent Cumulativ

e Percent

Valid

No 1 1.6 1.6 1.6

Sometimes 22 34.4 34.4 35.9

Yes 41 64.1 64.1 100.0

Total 64 100.0 100.0


The above table shows that 41 respondents are using social media frequently and only

one respondent has denied it which clearly indicates that the frequency to engage with

social media tools is more and thus it can be used to spread brand visibility

Figure 6.7 Frequency of Using Social Media

2%

34%

64%

FREQUENCY OF USING SM

No

Sometimes

Yes

Page | 112

8. Use of other media along with Social Media


The above table shows that 31 out of 64 respondents do not use other media and 33

out of 64 use other media supplementing social media which shows that almost 50%

respondents use traditional media along with social media

Figure 6.8 Other Media Used

48% 52%

OTHER MEDIA USED

No

Yes

Table 6.8 Other Media used along with Social Media

Other Media used Frequency Percent Valid

Percent

Cumulative

Percent

Valid

No 31 48.4 48.4 48.4

Yes 33 51.6 51.6 100.0

Total 64 100.0 100.0

Page | 113

9. Use of Organized Promotional deals


The above table shows that 29 respondents said that they might organize deals and

promotion in future and close to these 25 respondents have said yes which indicates

that it is the oldest and tested method to attract customers.

Figure 6.9

45%

16%

39%

ORGANISED DEALS PROMOTION

May be in future

No

Yes

Table 6.9 Organized deals promotion

Organised Promotion

deals

Frequency Percent Valid

Percent

Cumulative

Percent

Valid

May be in

future 29 45.3 45.3 45.3

No 10 15.6 15.6 60.9

Yes 25 39.1 39.1 100.0

Total 64 100.0 100.0

Page | 114

10. Use of Social Media for Campaigning


The above table shows 33 respondents have not used social media but its closest 31

respondents have used social media for various campaigns may be some cause or

promotion

Figure 6.10 Campaign Using Social Media

52% 48%

CAMPAIGN USING SM

No Yes

Table 6.10 Campaign using social media

Campaigns

using social

media

Frequency Percent Valid

Percent

Cumulative

Percent

Valid

No 33 51.6 51.6 51.6

Yes 31 48.4 48.4 100.0

Total 64 100.0 100.0

Page | 115

11. Frequency of Updates

Table 6.11 Frequency of updates

Frequency of updates Frequency Percent Valid

Percent

Cumulative

Percent

Valid

1 post a day 28 43.8 43.8 43.8

1 post every 1-2 days 23 35.9 35.9 79.7

2-3 posts a day 6 9.4 9.4 89.1

More than 3 posts a day 7 10.9 10.9 100.0

Total 64 100.0 100.0


The above table indicates that 28 respondents post updates everyday and near one 23

respondents post it in 1-2 days which indicates that people regularly engage

themselves with social media to update about the brand, news, resolving queries,

answering comments and many more reasons

Figure 6.11 Frequency of Updates

44%

36%

9%

11%

FREQUENCY OF UPDATES

1 post a day

1 post every 1-2days

2-3 posts a day

More than 3 postsa day

Page | 116

12. Increase in Revenue


The above table shows that 21 respondents have said they have not measured the

increase in revenue and 17 respondents have said by 25 % which indicates that it

difficult to give actual credit only to social media only for increase in revenue as

there can be be other factors also, but 25% increase is the big thing to get noticed.

Figure 6.12 Increase in Revenue

28%

6%

33%

27%

6%

INCREASE IN REVENUE

10%

No

Not measured

upto 25%

upto 50%

Table 6.12 Increase in Revenue

Increase in Revenue Frequency Percent Valid

Percent

Cumulative

Percent

Valid

10% 18 28.1 28.1 28.1

No 4 6.3 6.3 34.4

Not measured 21 32.8 32.8 67.2

upto 25% 17 26.6 26.6 93.8

upto 50% 4 6.3 6.3 100.0

Total 64 100.0 100.0

Page | 117

13. Benefits to Business


The above table indicates 38 people found social media beneficial and only 4

respondents have denied it which indicates there is majority to believe social media

benefits their business though actual reasons are difficult to gauge

Figure 6.13 Beneficial to Business

35%

6%

59%

IS SOCIAL MEDIA BENEFITIAL TO BUSINESS?

May be

No

Yes

Table 6.13 Beneficial to Business

Beneficial to

business


Percent

Valid

May be 22 34.4 34.4 34.4

No 4 6.3 6.3 40.6

Yes 38 59.4 59.4 100.0

Total 64 100.0 100.0

Page | 118

14. Measurement of Success


The above table shows 25 measure the success by increase in sales and 23

respondents talk about likes, comments, talking about this, views as the measurement

of success.

Figure 6.14 Measurement of Success

14.1 3.1

7.8

39.1

35.9

Measurement of Success

Brand visibility

Change in sentiment

Generating leads

Sales

Specific parameters viz. Likes, PeopleTalking about this, Comments,Impressions, views, etc.

Table 6.14 Measurement of Success

Measurement of Success Frequency Percent Valid

Percent

Cumulative

Percent

Valid

Brand visibility 9 14.1 14.1 14.1

Change in sentiment 2 3.1 3.1 17.2

Generating leads 5 7.8 7.8 25.0

Sales 25 39.1 39.1 64.1

Specific parameters viz.

Likes, People Talking

about this, Comments,

Impressions, views, etc.

23 35.9 35.9 100.0

Total 64 100.0 100.0

Page | 119

15. Social Media Investment

Table 6.15 Social Media Investment

Social Media Investment Frequency Percent Valid Percent Cumulative

Percent

Valid

Upto 10% 7 10.9 10.9 10.9

Upto 20% 12 18.8 18.8 29.7

Upto 5% 27 42.2 42.2 71.9

zero investment 18 28.1 28.1 100.0

Total 64 100.0 100.0


Above table indicate that out of total 64 respondents 7 respondents have invested upto

10%, 12 respondents have invested upto 20%, 27 respondents have invested upto 5%

This information is presented using pie diagram as shown below.

Figure 6.15 Social Media Investment

11%

19%

42%

28%

SOCIAL MEDIA INVESTMENT

Upto 10%

Upto 20%

Upto 5%

zero investment

Page | 120

Testing of Hypothesis

H01: There is no association between use of social media and type of

business.

H11: There is association between use of social media and type of business.

To test above hypothesis bivariate frequency table is obtained and presented as shown

below.

Source: Researcher’s Analysis

Results of chi-square test are as follows.

Chi-Square Tests

Value Df p-value

Pearson Chi-Square 15.954a 3 .001

Above table indicate that p-value is 0.001 which is less than standard value 0.05.

Therefore Chi-square test is rejected. Hence Null hypothesis is rejected. Alternate

hypothesis is accepted.

Conclusion: There is association between use of social media and type of business.

Crosstab Count

Type of business Use social media for

business

Total

No Yes

Customer service 18 30 48

Distribution 9 2 11

Manufacturing 3 5 8

Retailing 5 27 32

Total 35 64 99

Page | 121

H02: There is no association between frequency of use of social media and


H12: There is association between frequency of use of social media and

Benefit to the business

Crosstab count

Frequency of using

social media

Beneficial to business Total

May be No Yes

No 0 0 1 1

Sometimes 11 3 8 22

Yes 11 1 29 41

Total 22 4 38 64



Chi-Square Tests

Value Df p-value


Above table indicate that p-value is 0.040 which is less than standard value 0.05.

Therefore Chi-square test is rejected. Null hypothesis is rejected. Alternate hypothesis

is accepted.

Conclusion: There is association between frequency of use of social media and


Page | 122

H03: There is no association between organization deal promotion on social

media and Benefit to the business.

H13: There is association between organization deal promotion on social


Crosstab count

Organized deals

promotion

Beneficial to business Total

May be No Yes

May be in future 13 3 13 29

No 3 1 6 10

Yes 6 0 19 25

Total 22 4 38 64



Above table indicate that p-value is 0.163 which is greater than standard value 0.05.

Therefore Chi-square test is accepted. Null hypothesis is accepted.

Conclusion:There is no association between organization deal promotion on social


Chi-Square Tests

Value df p-value

Pearson Chi-Square 6.524a 4 0.163

Page | 123

H04: There is no association between frequency of updates and increase in

customer base

H14 There is no association between frequency of updates and increase in

customer base

To test above hypothesis bivariate frequency table is obtained and presented as

shown below.

Frequency of updates and Increase in customer post social media

Frequency of updates Increase in customer post social media Total

100 - 200 50 - 100 less

than

50

more

than

200

1 post a day 4 10 10 4 28

1 post every 1-2 days 3 6 9 5 23

2-3 posts a day 1 2 0 3 6

More than 3 posts a day 1 3 2 1 7

Total 9 21 21 13 64


Above table indicate that p-value is .713 which is greater than standard value 0.05.

Therefore Chi-square test is accepted. Hence Null hypothesis is accepted. Alternate

hypothesis is rejected.

Conclusion: There is no association between frequency of updates and increase in

customer base

Chi-Square Tests

Value df P -value


Page | 124

To Study the Influence of Consumer on Online Buying Behaviour

Demographic details

1. Use of Social Media Sites

Figure 6.16Use of Social Media Sites

Male 82 60%

Female 54 40%

Other 0 0%

The above pie chart indicates that out of the total number of participants 60% of the

respondents were men while remaining were females. This may indicate that men

may be active on the social media sites that women. This finding is consist with

findings by other marketing researchers (see for example NM Incite, State of Social

Media Survey (2011), available at - http://goo.gl/gN1FAi ).

Page | 125

2. Age Distribution

Figure 6.17 Age Distribution

18 to 24 years 58 43%

25 to 34 years 49 36%

35 to 44 years 22 16%

45 to 54 years 7 5%

55 to 64 years 0 0%

Age 65 or older 0 0%

The above figure shows a strong preponderance of youth and middle aged population

on social networking sites. Out of the total population, 43% of the respondents

belonged to the age group of 18 to 24 years followed by 36% of the respondents who

are from the age group 25 to 34 years. This unequal access could be explained on the

basis of the fact that younger population may be more comfortable with using

internet based services including social networking sites.

Page | 126

3. Education Level

Figure 6.18 Education Level

No schooling completed 0 0%

Nursery school to 8th grade 0 0%

Some high school, no diploma 11 8%

High school graduate, diploma or the equivalent 15 11%

Trade/technical/vocational training 1 1%

Bachelor’s degree 49 36%

Master’s degree 45 33%

Professional degree 13 10%

Doctorate degree 2 1%

Out of the total number of respondents, 36% of the respondents held some bachelor’s

degree followed by 33% of the respondents who were holding master’s degree. This

indicates that more of the educated people are active on social media sites, this is

easily explained as some sort of basic educational orientation may be necessary for

using internet based services like social networking sites.

Page | 127

4. Marital Status:

Figure 6.19 Marital Status

Single, never married 74 54%

Married or domestic partnership 62 46%

Widowed 0 0%

Divorced 0 0%

Separated 0 0%

The above figure indicates that the people active on social media sites were more or

less equally distributed in terms of their martial distribution. Out of the total number

of participants, 54% of the respondents were single/never married while the rest 46%

were married or in a domestic partnership.

Page | 128

5. Employment Status

Figure 6.20 Employment Status

Employed for wages 57 42%

Self-employed 20 15%

Out of work and looking for work 3 2%

Out of work but not currently looking for work 0 0%

A homemaker 9 7%

A student 47 35%

Retired 0 0%

Unable to work 0 0%

The above figure indicates that majority of respondents were either

employed/working (42%) followed by students 35%. This may indicate that the

working class or students may be more active on social networking as compared to

others.

Page | 129

6. City

Based on the responses obtained, it was observed that most of the respondents were

based in metropolitan cities. Most participants indicated that they were either based in

Mumbai and satellite cities. This unequal distribution may be because of the fact that

the researcher is also based in Mumbai and did not access to people residing in far off

places. However the finding is consistent with the fact that internet penetration in

India, though is fast growing, it is still in its infancy. Many villages still are not

connected by internet hence the presence of population residing in these areas may be

missing from the conventional social networking sites.

7. Social media/networking website Account holding status

Figure 6.21 Social media and Website account holding status

Yes 127 93%

No 10 7%

About 93% of the respondents were holding their accounts on social media sites. This

may indicate that most people active on the internet are active on social media sites.

Page | 130

8. Social media - Usage Pattern

Figure 6.22 Social media – Usage Pattern

Less than 1 month 1 1%

1 – 6 months 2 2%

6 months – 1 year 5 4%

1 – 2 years 13 10%

2 – 3 years 16 13%

More than 3 years 90 71%

Out of the total number of participants 71% of the respondents were using their

current account on social media sites for more than 3 years and 13% are using for 2-3

years. This may indicate that most people in the study were aware of the social media

sites for considerable period of time.

Page | 131

9. Login Patterns

Figure 6.23 Login Patterns

Always connected 32 25%

Several times a day 41 32%

Once in a day 26 20%

Every three days 11 9%

Once in a week 8 6%

Occasionally 9 7%

Out of those active on social media about 32% of the respondents used their social

media sites several times in a day and about 25% were almost always connected to the

social media via internet. This indicated that the usage of social media sites amongst

the participant pool was fairly high.

Page | 132

10. Social media sites followed

Figure 6.24 Social media sites followed

Twitter 34 12%

Facebook 123 43%

Linkedin 50 18%

Google plus 38 13%

Blogs 10 4%

Pinterest 7 2%

Foursquare 6 2%

Other 15 5%

Results of collected data clearly indicated that some of the social media sites are more

preferred and favourite over others by the participants. For example, 43% of the

respondents were holding account on Facebook, followed by LinkedIn at 13%.

Page | 133

11. Confidentiality and Privacy

Figure 6.25 Confidentiality and Privacy

Strongly Agree 42 33%

Agree 54 43%

Neutral 25 20%

Disagree 6 5%

Strongly Disagree 0 0%

Data from this study indicated that in general concern over the confidentiality and

privacy of the personal information is fairly higher amongst the users of social media.

Out of the total number of participants, 43% agree and 33% strongly agree and are

concerned regarding confidentiality and privacy of the personal information.

Page | 134

12. Purpose of using social media/networking sites

Figure 6.26 Purpose of using social media sites

Connecting with family and friends 118 24%

Playing games and contests 29 6%

Exchanging views about the product and services 37 7%

For online offers and discounts on products and services 40 8%

Updating profile on social media/networking sites 44 9%

Unspecified fun 17 3%

Sharing/consuming content 31 6%

Time-killing 29 6%

Debating 13 3%

Information 71 14%

Socializing 68 14%

Other 2 0%

Above figure indicated that 24% of the respondents used social media sites for

connecting with family and friends, followed by 14% of the respondents using it for

gathering information and another 14% used exclusively for socializing. This

Indicates that amongst the participant pool more people were on social media sites for

Page | 135

connecting to friends and family but the after that the reasons are widely distributed

and it can be concluded that people used social media for varied reasons .

13. Influence of opinion/reviews posted on social media/networking sites on

buying decisions

Figure 6.27 Influence of opinion/reviews posted on social

media/networking sites on buying decisions

Very important 29 23%

Important 57 45%

Neutral 29 23%

Somewhat not important 7 6%

Not important at all 5 4%

It is clear from the above figure that for 45% of the respondents, social media was

important for social life followed by 23% who feel that it was very important and

another 23% who were neutral. This may indicate a slow and steadily rising trend of

using social media sites.

Page | 136

14. Influence of opinion/reviews posted on social media/networking sites on

buying decisions

Figure 6.28 Influence of opinion/reviews posted on social

media/networking

From the above figure it is clear that online opinions and reviews did not affect the

buying decisions of the participants. About 41% of the respondents indicated that they

were sometimes influenced followed by only 21% who were more often influenced

than others. This may also indicate that more participants may get influenced by the

opinions/reviews posted on social media/networking sites in the future.

Always 14 11%

Most often 27 21%

Sometimes 52 41%

Rarely 30 24%

Never 4 3%

Page | 137

15. Reason for brand attraction through social media/networking marketing

Figure 6.29 Reason for brand attraction through social media/networking

marketing

Promotional offers such as discounts and coupons 79 27%

Brand information 71 24%

Facts and factoids 62 21%

Brand invitation 15 5%

Friends invitation 35 12%

Loyalty towards brand 27 9%

Other 3 1%

Analysis indicates that more people are attracted to a brand/advertisement because of

promotional offers. Out of the total participants about 27% of respondents were

attracted by promotional offers, 24% of the respondents were attracted by brand

information followed by 21% of the respondents for facts & factoids.

Page | 138

16. References for online retailer

Figure 6.30References for online retailer

Social networking/media 86 28%

Blogs 7 2%

Friends/family members 87 29%

Google or through other search engines 57 19%

TV/ Radio advertisements 48 16%

Banners/Posters 16 5%

Other 2 1%

Results indicate that Friends and family members are more likely to influence

shopping from online retailers as against other sources. About 29 % of the

respondents reported to be influenced by Friends/Family members and 28% of the

respondents are influenced by social networking/media.

Page | 139

17. Level of trust on information about online marketing (Family and

friends)

Figure 6.31Level of trust on information about online marketing

Very low 3 2%

Low 9 7%

Average 79 62%

High 34 27%

Very high 2 2%

Above results indicate that majority of participants may not have a strong belief/trust

over information offered via advertisements through online marketing. The above Pie

Diagram shows that 62% of the respondents showed average level of trust, followed

by 27% showing a high level of trust.

Page | 140

18. Level of trust in information on online marketing from outside sources

(community, brand profiles)

Figure 6.32 Level of trust

Very low 7 6%

Low 21 17%

Average 83 65%

High 14 11%

Very high 2 2%

The above figure shows that 65% of the respondents showed average level of trust,

followed by 17% showing a low level of trust. This indicates that majority of the

participants believed and trusted the information about online marketing shared by

outsiders as well but the trust is not very high.

Page | 141

19. Relevance of social media advertisements

Figure 6.33Relevance of social media advertisements

Strongly agree 5 4%

Agree 47 37%

Indifferent 46 36%

Disagree 24 19%

Strongly disagree 5 4%

About 37% of the respondents agreed that the advertisements shown on their social

media home pages were relevant to them followed by 36% of the respondents who are

indifferent about this (neither agree nor disagree). This may indicates that most of the

participants were not looking at the advertisements with interest or carefully.

Page | 142

20. Frequency of clicks on the social media advertisements

Figure 6.34Frequency of clicks on the social media advertisements

Always 0 0%

Most often 15 12%

Sometimes 40 31%

Rarely 48 38%

Never 24 19%

From the above figure it is clear that about 38% of the respondents were rarely

interested in clicking on the advertisements seen on the social media home pages

followed by 31% of the respondents who clicked only sometimes. This may indicate

that most of the times the advertisements were ignored or seen with much less

interest.

Page | 143

21. Frequency of purchasing products/service based on the advertisement

clicked

Figure 6.35Frequency of purchasing products/service based on the

advertisement clicked

Always 0 0%

Most often 8 6%

Sometimes 43 34%

Rarely 43 34%

Never 33 26%

The above results strongly indicate that the buzz about the online purchases is more

but the actual sale/purchase happening online still has a long way to go. About 34% of

the respondents purchase articles online sometimes, followed by another 34% who

purchase only rarely.

Page | 144

22. Experience of shopping online

Figure 6.36Experience of shopping online

Highly satisfied 8 6%

Satisfied 72 57%

Neutral 35 28%

Not so satisfied 8 6%

Dissatisfied 4 3%

This above indicated that 57% of the respondent were satisfied with their online

purchases and while rest were either neutral (28%) while a small fraction indicated

dissatisfaction. This may hint that the people who made online purchases were overall

satisfied with their choices.

Page | 145

23. Mode of payments

Figure 6.37 Mode of payments

Credit Card 42 23%

Debit Card 36 20%

Shopping Cards 0 0%

Net Banking 29 16%

Cash on delivery 74 41%

The above figure indicates that 41% of the respondents prefer cash on delivery as

mode of payment followed by 23% respondents who preferred Credit Card. This

indicates that most participants were more comfortable making payments only on

receipt of the product further indicating less trust on the retailer.

Page | 146

24. Satisfaction level with product purchase/services availed online

Figure 6.38Satisfaction level with product purchase/services availed online

Highly satisfied 9 7%

Satisfied 75 59%

Neutral 33 26%

Not so satisfied 7 6%

Dissatisfied 3 2%

Above figure indicates that about 59% of the respondents were satisfied and 26% of

the respondents were neutral. This indicates a higher level of satisfaction and more

participants seemed happy with the products and services offered online.

Page | 147

25. Satisfaction level with the aftersales services on online purchases

Figure 6.39 Satisfaction level with the aftersales services on online purchases

Always 10 8%

Most often 45 35%

Sometimes 48 38%

Rarely 18 14%

Never 6 5%

The above figure shows that 38% of the respondents were sometimes satisfied with

the aftersales services followed by 35% of the respondents who were satisfied most

often. This indicates that there is still a scope for improvement in the aftersales

services provided by the online retailers for the products sold.

Page | 148

26. Grievances/complaints on the retailer’s website/ social networking page

Figure 6.40 Grievances/complaints on the retailer’s website/ social networking

page

Always 3 2%

Most often 7 6%

Sometimes 21 17%

Rarely 37 29%

Never 59 46%

The above pie diagram shows that 46% of the respondents had never complaint

against the online retailer followed by 29% of the respondents having rarely

complained. This may indicate that most of times people don’t have complaint or the

same have not been reported.

Page | 149

27. Effect of social media marketing on frequency of purchases made

Figure 6.41Effect of social media marketing on frequency of purchases made

The above results indicate that Social Media had increased the frequency of the

products being bought online. The above Pie diagram shows that 57% of the

respondents agreed followed by 18% who are indifferent and did not have any effect

on their overall purchasing.

Strongly agree 8 6%

Agree 72 57%

Indifferent 23 18%

Disagree 22 17%

Strongly disagree 2 2%

Page | 150

Findings

Micro and Small Businesses

1. Awareness of social media is certainly very high among small businesses –

ithasbecome the “talk of the town.” As it was found that nearly 70% of respondents

use social media for their businessand to increase their visibility.

2. Butsimultaneously, on the other side ofthe coin nearly 30% of the respondents are

still not using social media and hence are missing out on a tremendous opportunity to

connect and engage with potential customers.

3. Small businesses have been slower to adopt, mainly because they feel social media

is not significant for their type of business.

4. Many respondents perceive their customers base do not use social networks or not

suitable for their type of business. In fact, this sentiment wasechoed by 30% of

respondents in a recent survey which mostly included distributors and manufacturers.

6. Majority of the respondents found social media marketing very important for their

business and were certain about its bright future potentials, when asked for their

opinions about social media.

7. It was found that majority of micro and small business had done initial investment

from zero up to 5 lakhs of budget to engage in social media for business.

8. The main reason for social media marketing was to create a platform for

highlighting their brand and create brand awareness as it would be difficult for the

small business to advertise their product by other expensive and paid mediums with

limited resources.

Page | 151

9. The brand highlighting was done through various social media tools like facebook,

twitter, pinterest, linkedin by using various engagement methods.

10. Majority have responded that they have not measured the increase in the revenue

afterthe inclusion of social media as a marketing tool, as there can be numerous other

factors which have an impact on the revenue generation of businesses.

Consumers

1. Social media in today’s times,is the number one activity on the web, as majority of

the respondents of the study have been found to be using social media for more than 3

years and spend on a average 4-5 hours on it a day.

2. People of all ages are not actively using social media. Respondents of the age

group from 15 to 35 arethe most active while respondents above age group 45 are

generally not engaged in social media for buying decisions as they prefer traditional

method of shopping.

3. Demographic details can be surmised as the respondents of the age group15-35

lead the survey, indicating that the younger generation is spending more time on

social media sites as they are logged in quite frequently.

4. Majority of the respondents found that social mediais important for their social life

and they engage in it mostly for connecting with family and friends, socializing and

collecting the information.

5. Facebook is the most favored and popular social networking site of the respondents

followed by linkedin and twitter , thus information on these social networking sites

seems to be relevant and of matter of interest to them.

Page | 152

6.Majority of the respondents hardly got influenced by the views and reviews of the

family and friends and also the external source, this may indicate that thedecision

making is influenced to the extent of procuring information.

7. Respondents do find the relevance in the advertisement they see on social media

sites and also click on them sometimes indicating they get attracted towards the brand

and want to collect information about the same though it may not convert into a

purchase.

8. They find contests, promotions, pictures, offers interesting and like to participate,

which shows that brand information do influence the respondents.

9. As far as the shopping experience is concerned, majority of the respondents who

have shopped online responded positively and were satisfied with the overall

experience.

10. The level of trust for shopping online is building gradually as majority

respondents agreed to have shopped sometime or the other after clicking on the

advertisement.

11. Respondents are satisfied with the after sales serviceprovided by the companies

selling online and they have rarely addressed the grievance, which can be a step

towards trust building and relationship management for shopping online.

12. Overall, the factors help to conclude that the consumers do get influenced by

social media marketing to some extent for making purchase decisions.

Consumers interact with businesses or brands via social media, for getting discounts

or coupons, reading reviews as part of purchasing process as customers research

product information before deciding to transact. Consumers are willing to interact

Page | 153

with businesses if they believe it is to their benefit, help create trust for the company

and decide social media is the right channel to use to get the value they seek. That

value could be in the form of a coupon or specific information. Engaging with a

company via social media may result in a feeling of connectedness for consumers – an

emotional, intangible gain – but the wish for intimacy is not what drives most of

them. For most consumers, social media is about engaging with friends and family

and accessing news and entertainment – not interacting with brands. When asked why

they go to social media or social networking sites, most of consumers chose,

connecting with network of friends and family, In fact, most of consumers surveyed

say they do not engage with brands via social media at all. Businesses are betting that

social media interactions will engender increased customer loyalty. However, many

consumers say they need to be passionate before they will engage, and they are split

regarding how much influence they think these interactions will have.

Page | 154

CHAPTER VII

Page | 155

CONCLUSION

Social media marketing is important because it aligns with the way consumers make

purchasing decisions. Study indicates that increasing numbers of consumers are using

internet services and research to carry out preliminary product and price research

before making final decisions. Social media marketing enables to build relations with

customers and prospects through regular, low-cost personalized communication,

reflecting the move away from mass marketing. Marketing products through social

media costs less than marketing them through a physical retail outlet. Social media

marketing enables to personalize offers to customers by building a profile of their

purchasing history and preferences. Most entrepreneurs use social media marketing to

build communities around there businesses. These communities are then used as

owned media to spark conversations, spread awareness, increase following, reward

fans and on the whole have a better relationship with their online audience. These

active and loyal communities fit right into company’s online/offline marketing and

communication campaigns. Facebook is still the most used social network in India

and advertisers love it. It gives them accesses to segment, reach and advertise to over

96,000,000 active Facebook users. Pinterest, Twitter, LinkedIn and Google Plus are a

few fast growing social platforms brands have an eye on. As these networks grow

brands are more likely to use these emerging platforms to connect, advertise and

nurture social relationships. Compelling generic content which people like to

consume and share with their friends is what businesses crave and love to post

multiple times a day to keep their communities active, interesting and fun to hang out

at. Businesses measure results from social network specific metrics like followers, re-

tweets, likes, shares, comments, etc. More than half of the businesses surveyed find it

difficult to measure results from their social media efforts. On the brighter side there

Page | 156

are businesses that are continuously measuring sales or leads generated from social

traffic, brand visibility on social platforms, user engagement and more. Businesses

usually spend zero or mostly around 1 to 5% of their marketing budget on social

media advertising. This most likely will go up as marketers figure out how to

optimize their social media efforts in a way that they contribute to a business

objective and how to measure conversions or other useful metrics from social media

marketing campaigns. With many affordable smartphones in the market and the

mobile penetration rate ever increasing, it is likely that internet and social media will

be accessible to many more in urban as well as rural India. The growth of social

media is inevitable and early adopters are already driving profits and brand exposure

from social relationships. Consumers who engage already have an affinity for that

brand or company, and mere participation via social media may not necessarily result

in increased loyalty or spending. But a recommendation from a friend or family

member could make a difference. The power of the social community’s endorsement

and influence can be felt each time someone “likes” a company on Facebook or re-

tweets a company’s message on Twitter. Companies can take advantage of this

dynamic by designing social media programs with the explicit goal of touching

customers emotionally and motivating them to share their experiences with others.

Organizations need to carefully consider how they can create a social media

experience that is unique to their brand, offers customer value and exploits the power

of the social community. Thus it can be concluded:

1. Social Media has become an important part of our lives. All businesses big or

small, one man or large scale organizations are using the power of Facebook, Twitter

etc. to engage with their customers, its impact is unprecedented.

Page | 157

2. ‘High popularity does not imply high influence and vice-versa’ Social media

is an emerging industry and like any other industry it is going through a churn before

best practices. At this point of time, there are several tools which give an automated

influence score but accuracy of these is still a question mark for several reasons.

3. There are no credible ways to measure return on investment in social media.

They also contend there is no definitive data showing that social media creates

business, or that the number of followers you have on Twitter or friends on Face book

translates into revenue.

4. Both traditional and social media have strong effects on marketing

performance, though a single unit of social media has a much smaller effect than a

single unit of traditional media. However, because social media is created in larger

volumes than traditional media, it has a sizeable effect on performance (i.e., social

media is high-volume, low-margin, whereas traditional media is low-volume, high-

margin).

5. Social media isn’t about statistics of hard numbers (likes, posts, comments,

number of visitors, links). It’s about good, old-fashioned relationship building.

6. With social media evolving at an incredible speed, it’s vitally important for

micro and small businesses to stay on top of the changes in order to get the most value

from their social marketing initiatives and investments.

It is understandable why companies want to use social media to interact with

customers. The benefits are real and deep. First, there is the social interaction itself,

which can provide direct value to the business through revenue from social commerce

and cost savings when used for customer care or research, in addition social

Page | 158

networking enables rapid, viral distribution of offers and content that may reach

beyond what could be done in traditional channels – all with endorsement from

connections people trust. But that is just the beginning Companies also can use social

platforms to mine data for brand monitoring and valuable customer insights, which

can spark innovations for improved services, products and customer experiences. In a

constant cycle of listen-analyze-engage-evolve, organizations can optimize their

social media programs to continually enhance their business. With so much to gain,

companies need to invest the effort to understand how to break through the noise and

offer current and potential customers a reason to reach out to them via social media.

Businesses, eager to get closer to customers, are building pages on social networking

sites, posting videos and microblogging; however, if they don’t focus on what the

majority of their customers value in social media, they may be missing the boat. In

fact, offering tangible value to consumers may be the strongest incentive to attract the

casual participants who need a good reason to interact. For companies that have been

taking a “build it and they will come” approach to social media, these consumer

findings are a wake-up call that much more needs to be done if they want to attract

more than the most devoted brand advocates. Social media is ultimately about

interacting with others with an expectation of getting something in return. Even if that

“something” is intangible, such as a feeling of connectedness or affection, participants

are actively, purposefully seeking value. For businesses, the challenge is unlocking

what their customers care about and creating social media experiences that deliver

that value. But first, companies need to understand the dynamics of consumer growth

and activity on social sites and take stock of consumer attitudes and the triggers that

compel them to seek out for the company.

Page | 159

CHAPTER VIII

Page | 160

SUGGESTIONS & RECOMMENDATIONS

Social media has matured to the point where marketers are no longer asking whether

it should be part of their marketing mix but how and where they should participate. A

clear strategy for the channel is now necessary. The low external costs of doing social

media can lull business owners into creating their own solutions. However, taking into

account the time spent debating, formulating, managing and executing social media

campaigns and creating contents makes it clear that money is at stake and a well-

thought-out plan is necessary. Instead of researching the best ways to engage in the

social networks and/or reaching out to an experienced person in the marketplace,

many businesses just start creating accounts and putting out content without much of

a plan or purpose. That is a recipe for spending a lot of time and not getting much for

it. An important part of an effective social media plan is deciding the following:

1. The brand message to be known through the social media space.

2. The competitive differences and unique qualities and capabilities that are

worthy of communicating about business via the social networks.

3. Integrate social media into other marketing efforts.

These important elements and working with a knowledgeable person, one can avoid

the pitfalls many small businesses have experienced thus far, save some time and/or

money, and learn how to succeed doing social media marketing. Following ideas can

help to achieve the success desired:

1. Social Media Marketing is a very effective way of nurturing relationships and

maintaining them with new and existing clients, which will bring in more work.

2. Online search queries focused on local businesses continues to accelerate with

people using social media, with an even greater growth in local search via mobile

Page | 161

devices. It is imperative that small businesses stake their claim now on basic local

channels, like Google Places, and populate those sites with the types of information

consumers are most likely to search for -- products and services, hours of operation,

contact phone number, physical address, etc.

3. To better increase business results, micro and small business owners must

understands their digital needs or take help from expertise to save time and help

achieve success online -- all start within a small budget.

4. Micro and Small businesses must deliver some value-added services, like

online shopping, booking or electronic billing and lead to the direction of ecommerce.

5. Presence on Facebook, and other social media channels such as Pinterest,

Twitter, etc., is highly recommended to micro and small businesses to increase

awareness among prospects, create and strengthen personal relationships with current

and potential customers and for a stronger brand recall too.

6. As the portion of a URL to the right of the dot (.com, .org, .net), specialized

TLDs, such as ".florist," ".cakes" and ".library," will have a significant impact on

where small businesses can be found on the web. It is an opportunity to cut through

the clutter of the usual ".com," ".net" or ".org" domains and convey an immediate

description of a business.

7. Social media has come to the point where marketers are no longer asking

whether it should be part of their marketing mix, but how and where they should

participate-- a clear strategy for the channel is nowpertinent.

8. Social media can be effective, but in order to work its magic, small businesses

have to choose the kinds of social sites they use wisely for their business.

Page | 162

9. It can be suggested that small businesses can tie up with online marketing sites

for bolstering their business as creating their own websites and other social media

engagements alone cannot make market soon.

Page | 163

CHAPTER IX

Page | 164

REFERENCES

1. http://decidedlysocial.com/13-types-of-social-media-platforms-and-

counting/#sthash.pyL7j2Q8.dpuf

2. http://en.wikipedia.org/wiki/Social_media

3. http://heidicohen.com/social-media-definition/

4. http://tejas-iimb.org/interviews/31.php#qn-1

5. http://whatis.techtarget.com/definition/social-media

6. http://www.businessdictionary.com/definition/marketing.html#ixzz30RXhYlv

7. http://www.businessdictionary.com/definition/marketing-

strategy.html#ixzz30RgeUlAW

8. http://www.emarketer.com/Article/India-Leads-Worldwide-Social-Networking-

Growth/1010396#sthash.5PmXlFDg.dpuf

9. http://www.palgrave-journals.com/dddmp/journal/v14/n1/full/dddmp201210a.html

10. http://www.rbi.org.in/scripts/FAQView.aspx?Id=84

11. http://www.slideshare.net/hasan_99/social-medias-influence-in-purchase-decision

12. https://econsultancy.com/blog/5324-20+-mind-blowing-social-media-statistics-

revisited#i.1tliew49zffkdv

13. www.briansolis.com/2010/12/the-difference-between-friends-fans-andfollo-wers/

14. http://www.engagency.ca/website-marketing/

15. http://www.socialmediaexaminer.com/26-facebook-fan-engagement-tips

16. http://en.wikipedia.org/wiki/Social_media_marketing

17. http://socialmediatoday.com/angela-hausman/321908/what-engagement-social-

media

Page | 165

18. http://www.theguardian.com/salesforce-partner-zone/what-is-social-media-

engagement-level-and-how-canit-you-improve-

19. http://socialmediatoday.com/adhutchinson/2137386/why-social-media-

engagement-so-important-anyway

20. http://csic.georgetown.edu/research/small-business-big-engagement

21. http://www.socialmediaexplorer.com/social-media-marketing/the-big-secret-to-

social-media-engagement-which-nobody-is-talking-about/

22. http://www.entrepreneur.com/article/233572

23. http://www.businessnewsdaily.com/5782-social-media-marketing.html

24. http://www.socialmediaexaminer.com/small-businesses-twitter-marketing/

25. http://www.theguardian.com/small-business-network/2014/apr/16/social-media-

smes-growth

26. http://www.business2community.com/social-media/state-social-media-small-

business-infographic-0862141#!H74Bm

27. http://blog.hubspot.com/marketing/18-fresh-stats-about-social-media-marketing

28. http://wearesocial.net/tag/india/

29. http://blog.tailwindapp.com/the-importance-of-fan-engagement/

30. http://www.slideshare.net/jolynndeal/social-media-engagement-19314315

31. http://www.hashtags.org/business/management/why-social-media-engagement-is-

a-big-deal/

32. http://www.jisc.ac.uk/blog/listen-understand-act-social-media-for-engagement-

28-jan-2014

33. http://blog.kissmetrics.com/increase-engagement-on-facebook/

34. singlegrain.com www/blog/50-ways-to-increase-engagement-on-facebook-

twitter-and-google/

Page | 166

35. http://sociallyahead.wordpress.com/2013/08/01/4-ways-to-drive-engagement-on-

linkedin/

36. http://www.investorwords.com/1055/consumer.html#ixzz30mBAOThh

37. http://www.ask.com/question/definition-of-consumer-behaviour

38. http://www.superprofesseur.com/19.html

39. http://en.wikipedia.org/wiki/User:Cbuquid/Social_consumer

40. http://digitalintelligencetoday.com/infographic-who-is-the-social-consumer/

41. Posted: 01/22/2014 12:14 pm EST Updated: 03/13/2014 4:59 pm EDT. Small

Business Gets Serious: Digital Trends for Small Business in 2014. Retrieved from

http://www.huffingtonpost.com/news/digital/

42. Websadmin. Posted on 8th May. Can Social Media Have an Impact on Small

Businesses and How? Articles.

43. Shea Bennett (August 16, 2012 6:00 AM). Social Media Is Making A Big Impact

On Small Business [INFOGRAPHIC]. Retrieved from

http://www.mediabistro.com/alltwitter/social-media-small-business_b26932

44. Abu Bashar, Irshad Ahmad, Mohammad Wasiq. November 2012. Effectiveness

of social media as a marketing tool: an empirical study, International Journal of

Marketing, Financial Services & Management Research,Vol.1 Issue 11, ISSN 2277

3622.Faridabad. Retrieved from

http://www.academia.edu/2948659/Effectiveness_Of_Social_Media_As_A_Marketin

g_Tool_An_Empirical_Study

45. Sharon S. Pate, Adams.(n.d).The Influence of Social Networking Sites on Buying

Behaviors of Millennials, Atlantic Marketing Journal.University of

Louisiana,University of the Incarnate Word. Retrieved from

http://digitalcommons.kennesaw.edu/amj/vol2/iss1/

46. ElisabetaIoanăs, IvonaStoica.(2014). Social Media and its Impact on Consumers

Behavior, International Journal of Economic Practices and Theories, Vol. 4, No. 2, ,

Special issue on Marketing and Business Development, e-ISSN 2247–7225

http://digitalintelligencetoday.com/infographic-who-is-the-social-consumer/

Page | 167

www.ijept.org 295. Retrieved from

http://www.ijept.org/index.php/ijept/article/view/Social_Media_and_its_Impact_on_

Consumers_Behavior/134

47. Sinan Aral, ChrysanthosDellarocas, David Godes. March 2013. Social Media and

Business Transformation: A Framework for Research . Information Systems

Research,Vol. 24, No. 1, pp. 3–13, ISSN 1047-7047 (print) ISSN 1526-5536

(online). Retrieved from http://pubsonline.informs.org.sci-

hub.org/doi/abs/10.1287/isre.1120.0470

48. Blog. 10/08/2013Small Businesses in India Going Social to Boost Growth.

Retrieved from http://forbesindia.com/blog/technology/small-businesses-in-india-

going-social-to-boost-growth/#ixzz30SDR2Av4

49. Melinda Majláth.(2012).Using Social Media by Micro Enterprises – Case Study

for Understanding Motivation, Practice and Expectations, Economics, 12(1), 171-180

171, Annals of the University of Petroşani. Retrieved from

http://www.upet.ro/annals/economics/pdf/2012/part1/Majlath.pdf

50. MukundNamdevHaladkar. (03/03/2014). Micro, Small And Medium Enterprises

(Msmes) In India: An Overview, Indian Streams Research Journal, ISSN No : 2230-

785 Laxmi Book Publication. DOI : 10.9780/22307850. Retrieved from

http://www.isrj.net/Article.aspx?ArticleID=4298

51. YolandeD’Mello.( Feb 8, 2014).Social media salesman, Mumbai Mirror.

http://www.mumbaimirror.com/others/you/Social-media-

salesman/articleshow/30016984.cms

52. IAMAI .(Tue, 08 Oct 2013).Social Media Campaign Can Swing 3%-4% Of

Votes. Retrieved from

http://www.iamai.in/PRelease_detail.aspx?nid=3190&NMonth=10&NYear=2013

53. Evan Prokop.( Mar 30th, 2014).4 Essential Trends in Social Media Marketing in

2014, Online Marketing, Social Media, Social Media Marketing World. Retrieved

from http://www.toprankblog.com/2014/03/social-media-marketing-tremds/

Page | 168

54. (Dec 22, 2013).Social Media Marketing Trends to Watch Out For in 2014,

retrieved from http://www.lifehacker.co.in/jugaad/Social-Media-Marketing-Trends-

to-Watch-Out-For- in-2014/articleshow/27753334.cms

55. India Leads Worldwide Social Networking Growth. Country set to control largest

Facebook population worldwide. Retrieved from

http://www.emarketer.com/Article/India-Leads-Worldwide-Social-Networking-

Growth/1010396#sthash.5PmXlFDg.dpuf

56. (1.1.2014). Statistic Verification, Facebook. Retrieved from

http://www.statisticbrain.com/facebook-statistics/

57. (March 2013).The Implications of Facebook Marketing for Organizations,

Contemporary Management Research. Pages 73-84, Vol. 9, No. 1,

doi:10.7903/cmr.9710

58. (2014).The Complementary Roles of Traditional and Social Media in Driving

Marketing Performance Special issue on Marketing and Business Development,

International Journal of Economic Practices and Theories, Vol. 4, No. 2, e-ISSN

2247–7225, Retrieved from: www.ijept.org

59. ElisabetaIoanăs, IvonaStoica(n.d).Social Media and its Impact on Consumers

Behavior. The Bucharest University of Economic Studies, Romanian American

University in Bucharest, Romania

60.Sharon S. Pate, Melinda Adams(2013).The Influence of Social Networking Sites

on Buying Behaviors of Millennials, Atlantic Marketing Journal ISSN: 2165-3879

(print), 2165-3887 (electronic)

61. Atlantic Marketing Journal Vol. 2, No. 1 (Winter 2013)

62. PatarawadeeSema, Professor Martin Sivula(july 30, 2013). : Does Social Media

Affect Consumer Decision-Making? RSCH 5500: Business Information and Decision

Making

63. Holly Paquette(1-1-2013). Social Media as a Marketing Tool: A Literature.

University of Rhode Island

http://www.statisticbrain.com/facebook-statistics/

Page | 169

64. Loredana Di Pietro, EleonoraPantano(18-29 (July/September 2012). An empirical

investigation of social network influence on consumer purchasing decision: The case

of Facebook, Journal of Direct, Data and Digital Marketing Practice 14, 18-29

(July/September 2012) | doi:10.1057/dddmp.2012.10

65.Sinan Aral, David Godes, ChrysanthosDellarocas (n.d.). Social Media and

Business Transformation: A Framework for Research

66. Evan Prokop(Mar 30th, 2014). 4 Essential Trends in Social Media Marketing in

2014,Online Marketing, Social Media, Social Media Marketing World

67. Michael stelzner(n.d). The energy was sky high at Social Media Marketing World

this year.

68.SisiraNeti(2 July 2011). Social media and its role in marketing, International

Journal of Enterprise Computing and Business Systems, Vol. 1. ISSN (Online) :

2230-8849. Retrieved from http://www.ijecbs.com

69. G.M. Filisko(Jan 1, 2011). Social Media or Snake Oil: Does Social Media

Measure Up to the Hype? ABA Journal. Retrieved from

http://www.abajournal.com/magazine/article/social_media_or_snake_oil

70. (July 2010). Social Media Monitoring Tools. Retrieved from www.human-

digital.com/...files/...Social_Media_Monitoring_Tools.pdf

http://www.ijecbs.com/

http://www.abajournal.com/magazine/article/social_media_or_snake_oil

Page | 170

QUESTIONNAIRE FOR CONSUMER

Studying the influence of social media on online buying decisions Informed

Consent Form

Purpose of the Study: This is a study in marketing and social networking that is

being conducted by Ms. Shilpa Chheda, M.Phil Research Scholar, at D.Y. Patil

Management Institute, Mumbai. The purpose of this study is to analyse the impact of

marketing on social media and networking sites on purchasing decision of customers.

What will be done: You will complete a survey, which will take around 10 minutes

to complete. The survey includes questions about your social media and networking

history. Other survey questions will address your perceptions of shopping online via

online retailers. We also will ask for some demographic information (e.g., age, marital

status, number of children, education level) so that we can accurately describe the

general traits of the group of participants participating in the study.

Benefits of this Study: Though you will not gain any direct advantage through the

participation in this study, you will be contributing to knowledge about consumption

of online marketing through social media and networking. Risks or discomforts: No

risks or discomforts are anticipated from taking part in this study.. If you decide to

quit at any time before you have finished the questionnaire, your answers will NOT

be recorded.

Confidentiality: Your responses will be kept completely confidential. We will NOT

know your IP address when you respond to the Internet survey. Only the researchers

will see your individual survey responses. After we have finished data collection and

analysed the collected data we will destroy after a period of 7 years. Decision to quit

Page | 171

at any time: Your participation is voluntary; you are free to withdraw your

participation from this study at any time. If you do not want to continue, you can

simply leave this website. If you do not click on the "submit" button at the end of the

survey, your answers and participation will not be recorded.

How the findings will be used: The results of the study will be used for scholarly

purposes only. The results from the study will be presented in educational settings and

at professional conferences, and the results might be published in a professional

journal in the field of marketing/management studies.

Contact information: If you have concerns or questions about this study, please

contact Ms. Shilpa Chheda at [email protected] or Dr. R. Gopal- the supervisor

of the study at +9122 27565618

*Required

1. By beginning the survey, you acknowledge that you have read this information and

agree to participate in this research, with the knowledge that you are free to withdraw

your participation at any time without penalty.

* Select only one.

a. Yes, I would like to proceed

b. No, I would not like to participate in this study. Stop filling out this form.

Section A

Demographic details

2. Please indicate your gender

a) Male

b) Female

c) Other

Page | 172

3. What is your age?

a) 18 to 24 years

b) 25 to 34 years

c) 35 to 44 years

d) 45 to 54 years

e) 55 to 64 years

f) 65 or older

4. Please indicate the level of education you achieved

a) No schooling completed

b) Nursery school to 8th grade

c) Some high schoolno diploma

d) High school graduate, diploma or the equivalent (for example: GED)

e) Trade/technical/vocational training

f) Bachelor’s degree

g) Master’s degree

h) Professional degree

i) Doctorate degree

5. Marital Status: What is your marital status?

a) Single, never married

b) Married or domestic partnership

c) Widowed

d) Divorced

e) Separated

Page | 173

6. Please indicate your current employment status

a) Employed for wages

b) Self-employed

c) Out of work and looking for work

d) Out of work but not currently looking for work

e) A homemaker

f) A student

g) Retired

h) Unable to work

7. Please indicate the city of your residence

__________________

8. Do you have an account on any social media/networking website?

a) Yes

b) No Stop filling out this form.

Section B

(Information about your social media/networking participation)

9. For how long have you been using social media sites?

a) Less than 1 month

b) 1 – 6 months

c) 6 months – 1 year

d) 1 – 2 years

e) 2 – 3 years

f) More than 3 years

Page | 174

10. How would you describe your log in pattern on social media/networking sites?

a) Always connected

b) Several times a day

c) Once in a day

d) Every three days 4

e) Once in a week

f) Occasionally

11. Which social media sites do you explore? (Select as many as applicable) * Tick all

that apply.

a) Twitter

b) Facebook

c) Linkedin

d) Google plus

e) Blogs

f) Pinterest

g) Foursquare

h) Other: _________________

12. Do you experience concern regarding the confidentiality and privacy of your

personal information?

a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

Page | 175

13. What is the Purpose of using social media/networking sites? (select as many as

applicable) * Tick all that apply.

a) Connecting with family and friends

b) Playing games and contests

c) Exchanging views about the product and services

d) For online offers and discounts on products and services 4

e) Updating profile on social media/networking sites

f) Unspecified fun

g) Sharing/consuming content

h) Time-killing

i) Debating

j) Information

k) Socializing

l) Other: _______________

14. How important do you think social media is for your social life?

a) Very important

b) Important

c) Neutral

d) Somewhat not important

e) Not important at all

Page | 176

Section C

(Impact of social media marketing on your buying decisions and your experience

of online purchasing)

15. How often do you consider opinion/reviews posted on social media/networking

sites for buying decisions?

a) Always

b) Most often

c) Sometimes

d) Rarely

e) Never

16. What attracts you towards brand through social media/networking marketing?

(select as many as applicable) * Tick all that apply.

a) Promotional offers such as discounts and coupons

b) Brand information

c) Facts and factoids

d) Brand invitation

e) Friends invitation

f) Loyalty towards brand

g) Other: ____________________

17. Which online retailer do you prefer to shop from? (Select as many as applicable) *

Tick all that apply.

a) Myntra.com

b) Flipkart.com

Page | 177

c) Amazon.in

d) Junglee.in

e) Yebhi.com

f) Freeculture.com

g) 100bestbuys.com

h) Ebay.in

i) Small scale non-branded sellers

j) Snapdeal.com

k) Zovi.com

18. From where did you hear about the online retailer you selected in the above

question?(Select as many as applicable) * Tick all that apply.

a) Social networking/media

b) Blogs

c) Friends/family members

d) Google or through other search engines

e) TV/ Radio advertisements

f) Banners/Posters

g) Other: _____________

19. What is the level of trust you have in information on online marketing from

personal sources (family, friends and their connections)?

a) Very low

b) Low

c) Average

d) High

e) Very high

Page | 178

20. What is the level of trust in information on online marketing from outside sources

(community, brand profiles)?

a) Very low

b) Low

c) Average

d) High

21. Do you think advertisements appearing on your social media profile are relevant

for you?

a) Strongly agree

b) Agree

c) Indifferent

d) Disagree

e) Strongly disagree

22. How frequently do you click on the advertisements seen on social media (in terms

of accessing the site or buying the product)?

a) Always

b) Most often

c) Sometimes

d) Rarely

e) Never

Page | 179

23. How frequently do you purchase products/service based on the advertisement

clicked?

a) Always

b) Most often

c) Sometimes

d) Rarely

e) Never

24. How would you rate the experience of shopping online?

a) Highly satisfied

b) Satisfied

c) Neutral

d) Not so satisfied

e) Dissatisfied

25. What mode of payment do you commonly use? Tick all that apply.

a) Credit Card

b) Debit Card

c) Shopping Cards

d) Net Banking

e) Cash on delivery

26. Are you satisfied with product purchase/services availed?

a) Highly satisfied

b) Satisfied

c) Neutral

Page | 180

d) Not so satisfied

e) Dissatisfied

27. Are you satisfied with the aftersales services on products purchase online?

a) Always

b) Most often

c) Sometimes

d) Rarely

e) Never

28. How many times have you posted your grievance/complaints on the retailers

website/ social networking page?

a) Always

b) Most often

c) Sometimes

d) Rarely

e) Never

29. Please indicate your agreement/disagreement with the following statement -

“Social networking/media has increased my frequency of buying products online or

use of online services.”

a) Strongly agree

b) Agree

c) Indifferent

d) Disagree

e) Strongly disagree

Page | 181

QUESTIONNAIRE FOR RETAILERS

Impact of Social Media Marketing on performance of Small

Businesses Informed Consent Form

Purpose of the Study: This is a study in marketing and social networking that is

being conducted by Ms. Shilpa Chheda, M.Phil Research Scholar, at D.Y. Patil

Management Institute, Mumbai. The purpose of this study is to analyse the impact of

Social Media Marketing on performance of Small Businesses.

What will be done: You will complete a survey, which will take about 10 minutes to

complete. The survey includes questions about your social media and networking

history. We also will ask for some basic information pertaining to your business (e.g.

type of business, no. of employees, investment done etc) so that we can accurately

describe the general traits of the business group with respect to social media.

Benefits of this Study: Though you will not gain any direct advantage through the

participation in this study, you will be contributing to knowledge about impact of

Social Media Marketing on performance of Small Businesses. Risks or discomforts:

No risks or discomforts are anticipated from taking part in this study. If you decide to

quit at any time before you have finished the questionnaire, your answers will NOT

be recorded.

Confidentiality: Your responses will be kept completely confidential. We will NOT

know your IP address when you respond to the Internet survey. Only the researchers

will see your individual survey responses. After we have finished data collection and

analysed the collected data we will destroy after a period of 7 years. Decision to quit

at any time: Your participation is voluntary; you are free to withdraw your

Page | 182

participation from this study at any time. If you do not want to continue, you can

simply leave this website. If you do not click on the "submit" button at the end of the

survey, your answers and participation will not be recorded.

How the findings will be used: The results of the study will be used for research

purposes only. The results from the study will be presented in educational settings and

at professional conferences, and the results might be published in a professional

journal in the field of marketing/management studies.

Contact information:

If you have concerns or questions about this study, please contact Ms. Shilpa Chheda

at [email protected] or Dr. R. Gopal- the supervisor of the study at +9122

27565618

*Required

1. By beginning the survey, you acknowledge that you have read this information and

agree to participate in this research, with the knowledge that you are free to withdraw

your participation at any time without penalty.

a) Yes, I would like to proceed

b) No, I would not like to participate in this study. Stop filling out this form.

Basic information about your business

2. Please indicate the type of business you own * (select as many as applicable) Tick

all that apply.

a) Manufacturing

b) Distribution

Page | 183

c) Retailing

d) Customer service

e) Other: ___________________

3. Please indicate the initial investment done in the business

a) 00-05 lakhs

b) 05-10 lakhs

c) 10-15 lakhs

d) 15-20 lakhs

4. Do you use social media/networking for marketing/promoting your

products/services?

a) Yes

b) No Skip to question 27.

Section 1a

5. Since how long are you using social media / networking for business promotion

and marketing?

a) less than 6 months

b) 6 months - 1 year

c) 1 year - 2 years

d) 2 years - 3 years

e) more than 3 years

Page | 184

6. State the average number of customers prior participation in social media

marketing

a) less than 50

b) 50 - 100

c) 100 - 150

d) 150 - 200

e) more than 200

7. What is the objective of your social media engagement? (Select as many as

applicable) Tick all that apply.

a) Research

b) Platform to highlight brand development/news

c) Customer service

d) Generate leads

e) Build community

f) Other: ______________

8. Which are the platforms you used for your social media marketing efforts? (select

as many as applicable) * Tick all that apply.

a) Facebook

b) Twitter

c) YouTube

d) Blog

e) Linkedin

f) Other: _________________

Page | 185

9. Do you regularly engage with customers/influencers?

a) Yes

b) Sometimes

c) No

10. Do you include information about your social media campaigns in your print/TV

advertising campaigns?

a) Yes

b) No

11. Have you organised any exclusive deals/promotions for online fans online?

a) Yes

b) May be in future

c) No

12. Have you run a campaign using only social media or has social media been the

leading component in any campaign?

a) Yes

b) No

13. Have you speeded up processes, or shown a special favour to any of your online

fans, followers that you would normally not do for your customers who are not

online?

a) Yes

b) No

Page | 186

14. What are the topics related to your brand that you post on your Social Media /

Networking Sites vis-à-vis totally unrelated topics? * Tick all that apply.

a) Interesting pictures

b) Videos

c) Factoids

d) Quiz

e) Industry news

15. What is the average frequency of updates you have on your Social Media /

Networking Sites

a) 1 post a day

b) 1 post every 1-2 days

c) 2-3 posts a day

d) More than 3 posts a day

16. What is your average response time with which you attempt to reply to a fan

query on Social Media / Networking Sites

a) 1 to 30 min

b) 30 min to 60 min

c) More than 60 min

d) Within 6 hrs.

e) Within 12 hrs.

f) Within 24 hrs.

g) More than 24 hrs.

Page | 187

17. On Social Media/ Networking Sites, how often on an average necessary to have

contests/giveaways, promotions for fans, besides the regular day to day interaction?

a) Every week

b) Every fortnight

c) Every month

d) Once in a quarter

e) Once in 6 months

18. What is the type of contest you have found to be the most successful on your

social media platform? * select as many as applicable Tick all that apply.

a) Picture game

b) Quiz contest

c) Game

d) Video contest

e) Other: __________

19. What has been the average value of the prize you have offered ever for your

online contests? This is the prize that one individual winner get, and not the overall

amount

a) Less than Rs. 1000

b) Rs. 1000 - Rs. 2000

c) Rs. 2000 - Rs. 3000

d) More than 3000

e) I have never offered online prize

Page | 188

20. Have you conducted any social media research for your organisation? Can you

share what kind of research have you conducted? * Tick all that apply.

a) To understand customer behavior

b) Competitive Benchmarking

c) To get customer feedback

d) Other: ____________

21. Are you finding social media advertising beneficial for your business

a) Yes

b) May be

c) No

22. How do you measure your success/ ROI on social media? * Tick all that apply.

a) Specific parameters viz. Likes, People Talking about this, Comments,

Impressions, views, etc.

b) Sales

c) Change in sentiment

d) Brand visibility

e) Generating leads

f) Other: _______________

23. State the average number of customers post participation in social media

marketing

a) less than 50

b) 50 - 100

Page | 189

c) 100 - 150

d) 150 - 200

e) more than 200

24. Are you able to see increase in revenue from your social media engagements? *

Mark only one oval. Not measured No Maybe 10% upto 25% upto 50% more than it

25. How much percentage of your marketing budget do you spend on your social

media initiatives?

a) zero investment

b) 1 to 5 %

c) 5 to 10 %

d) 10 to 15 %

e) more than 15%

26. Comments on future of Social media in few lines *

_________________________

_________________________

Stop filling out this form.

Section 1b

27. State the number of Average number of customers without engaging in social

media

a) less than 50

b) 50 - 100

c) 100 - 150

d) 150 - 200

e) more than 200

Page | 190

28. Please indicate the reasons that prevent you from using social media/networking

for marketing/promoting your products/services (Select as many as possible) Tick all

that apply.

a) Not aware of social media/networking sites

b) Cost factor

c) Too much time required to maintain the page/ads

d) I don't think marketing on social media/networking sites work

e) Lack of expertise to use social media/networking sites

f) Plans to use social media/networking sites in the future

g) Social media/networking is not effective for the type of business I run

h) My customer base is not familiar with social media/networking sites

i) Other: ______________________

IMPACT OF SOCIAL MEDIA MARKETING ON PERFORMANCE OF MICRO · PDF filePage | 3 DECLARATION I,...

Documents

Transcript of IMPACT OF SOCIAL MEDIA MARKETING ON PERFORMANCE OF MICRO · PDF filePage | 3 DECLARATION I,...